and economically. These strategies can broadly be divided into .
National Provident Funds
(a) Social Insurance : Social
Insurance is compulsorily a contributory
utility approach whereby the benefit liability is passed directly or
on length of employment or period of contribution. The periodic cash
provided on the occurrence of a specified social security contingencies are
related to current or past earnings of contribution period. Benefits are
or largely from specified contributions paid by the employee or their employers
or both in
a publicly supervised fund. Risks and resources are pooled in a social
The social insurance thus attains the objectives of poverty prevention and
(b) Social Assistance: By its
very meaning it is an assistance to the citizens of a
country/state. This is a means tested approach whereby benefits are provided
prescribed categories of need. Determination by a state of categorization
to a means
test. A periodic flat rate cash payment are designed to bring a resident.s
to community accepted minimum level. In this strategy of social assistance the
cost of the social security is paid from the general revenues of Government.
assistance gains the objectives of poverty alleviation.
(c) Employers Liability : This
strategy of social security is aimed at involving the
in providing social security benefits to his employees whereby employers are
by law to provide benefits like employment injury, sickness, Pension, Provident
maternity to their employees and their dependents. Employers may be required to
against their social security risks with public or private insurance carriers.
the objectives of attacking contingent poverty.
(d) National Provident Funds:
The fourth in the approach to provide social security to
citizens is the approach of Provident Funds where the nation designs a scheme
savings whereby covered employees and their employers pay regular
to a publicly administered or supervised fund. These contributions are
to a separate account maintained for each employee. The balance in their
interest and is payable in Lump sum upon the occurrence of a specified
Again this strategy attains the objective of poverty prevention.
(e) Universal Schemes : The
universal schemes are not linked to income, employment or
means. These universal schemes are usually financed from general revenues.
programmes are mainly governmental programmes and include old age pension for
a certain age, pension for disabled workers, widows, widowers, orphans and
allowances. There are also programmes in this category of strategy that are
from contributions from worker and employer even though they receive
support from general revenues. The objectives of these strategies are again
OBJECTIVES OF SOCIAL SECURITY
meaning of the Social Security as discussed above clearly indicates the
Security in the developing countries. These objectives are to ensure:
in the event of unemployment or non employment for young orphans,
women, incurably sick, old persons when there is none to take care of them.
or providing work to those who can work which includes job security and
Standardisation of income for maintenance of life at an optimum level.
4. Protection against fall in
income due to any contingency.
period of colonial India- if we look back to the period of pre – 1919 i.e.
war I period, the then Indian Government started sensing the necessity to have
security benefits to the working class or working population when the factory
started growing with the establishment of Cotton mills in Bombay in 1851 and
Bengal in 1855. The conditions prevailing in these factories were inhuman.
working hours were excessive, provisions for safety were nil. Workers welfare,
leave, medical care were taboos to talk about by the working class of that
Industrialists faced problems of their existence with the growing accidents in
and factories and the resultant fear psychosis developed among the workers
unrest among the working population, they felt that there should be some
sops to be given to the working class. This ultimately resulted in the
of Fatal Accidents Act 1855 on the model of English Fatal Accidents Act
act has its own limitations. Provisions of the Act were highly inadequate.
the Act does not permit certain dependants viz. brothers, sisters to claim
The rate of compensation was also very much inadequate and uncertain.
between 1919 and 1941 is worth noting in the history of social security in
colonial India. World War I had a tremendous impact on the attitude of
society towards labour. With the cessation of hostilities the world turned to
which gave birth to the establishment of ILO. ILO adopted as many as
conventions and which later increased to 28 social security conventions. But of
the convention no.102 concerning the minimum standard of social security is
It is a comprehensive instrument covering almost every branch of social
in minimum standard in respect of benefits payable in large number of
like sickness, unemployment, old age, death, employment injury, invalidity
has however ratified only the following five conventions viz. –
Workmen’s Compensation (Accident) Convention 1925 (No.17)
Workmen’s Compensation (Occupational Disease) Convention 1925 (No.18)
Workmen’s Compensation (Occupational Disease) Convention (revised) 1934
Equality of treatment (Accident) Convention 1925 (No.19)
in 1962 the Equality of treatment (social security) Convention was
from 1920 in the history of working class is worth noting. This is the
of Trade Unionism in India. Workers started organising themselves for
of their grievances. In India as well as in several other countries the
launched during 1920 have led India to the passing of Workmen’s Compensation
Though this Act was passed on 5.3.1923 it came into force from 1.7.1924. The
the act was to “eliminate the hardship experienced under the common
prompt payment of benefits regardless of fault and with a minimum of legal
(Law Commission of India, sixty second report on the Workmen’s
Act, 1923, 1974, p.6.). After this Act, the Government of India enacted the
Funds Act, 1925. It was made applicable to Railways and Government
establishments. During the same period i.e. in 1929 the Government of
adopted the Maternity Benefit Act followed by the Central Provinces in 1930.
recommendation of the Royal Commission on Labour, Ajmer Merwar in 1934, Delhi
Madras and United Province in 1938 passed maternity benefit legislation. In
to these provincial legislations the Central legislation passed was for the
enactments of Mines Maternity Benefits Act 1941. These legislations provided
payment of Maternity benefit to the women employed in Mines. Another
abrogating the doctrine of common employment and assumed risk was passed in
enacting Employers Liability Act 1938. If we look at the recommendations of the
Commission on Labour which enquired during 1929 into the working conditions on
Labour the concern for the welfare of the workers and provisions against old
understood in its own words –
life tends to break down the joint family system. Those workers who,
beginning of their industrial career, own a plot of land, are often unable to
possession, and with the passage of the years the connection with the
became loosened. Workers in the mines are unable to save out of their low
against old age. Those in intimate touch with the life of the workers know
of their misery in which they pass their old age. The necessity for
some provision against old age need to be emphasised. A few employers,
administration and government department have made provisions for some
workers, either by means of a PF or by instituting a system of pension. It is
appreciated that in this
report it is impossible to make provision for meeting ever