socially be required to be insured against their

socially
and economically. These strategies can broadly be divided into .

(a) Social
Insurance

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(b) Social
assistance

(c)
Employers liability

(d)
National Provident Funds

(e)
Universal Schemes

(a) Social Insurance : Social
Insurance is compulsorily a contributory

employment
utility approach whereby the benefit liability is passed directly or

indirectly
on length of employment or period of contribution. The periodic cash

payments
provided on the occurrence of a specified social security contingencies are

usually
related to current or past earnings of contribution period. Benefits are
financed

entirely
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
insurance

program.
The social insurance thus attains the objectives of poverty prevention and

attacking
contingent poverty.

(b) Social Assistance: By its
very meaning it is an assistance to the citizens of a

particular
country/state. This is a means tested approach whereby benefits are provided

in
prescribed categories of need. Determination by a state of categorization
criteria subjects

to a means
test. A periodic flat rate cash payment are designed to bring a resident.s
total

income up
to community accepted minimum level. In this strategy of social assistance the

entire
cost of the social security is paid from the general revenues of Government.
Thus the

social
assistance gains the objectives of poverty alleviation.

6

(c) Employers Liability : This
strategy of social security is aimed at involving the

employer
in providing social security benefits to his employees whereby employers are

required
by law to provide benefits like employment injury, sickness, Pension, Provident

Fund,
maternity to their employees and their dependents. Employers may be required to
be

insured
against their social security risks with public or private insurance carriers.
This also

attains
the objectives of attacking contingent poverty.

(d) National Provident Funds:
The fourth in the approach to provide social security to

its
citizens is the approach of Provident Funds where the nation designs a scheme
of

compulsory
savings whereby covered employees and their employers pay regular

contribution
to a publicly administered or supervised fund. These contributions are

credited
to a separate account maintained for each employee. The balance in their
accounts

attracts
interest and is payable in Lump sum upon the occurrence of a specified

contingencies.
Again this strategy attains the objective of poverty prevention.

(e) Universal Schemes : The
universal schemes are not linked to income, employment or

any other
means. These universal schemes are usually financed from general revenues.

These
programmes are mainly governmental programmes and include old age pension for

persons of
a certain age, pension for disabled workers, widows, widowers, orphans and

family
allowances. There are also programmes in this category of strategy that are
financed

in part
from contributions from worker and employer even though they receive

substantial
support from general revenues. The objectives of these strategies are again

poverty
alleviation.

OBJECTIVES OF SOCIAL SECURITY

The
meaning of the Social Security as discussed above clearly indicates the
objectives of

Social
Security in the developing countries. These objectives are to ensure:

1. Support
in the event of unemployment or non employment for young orphans,

destitute
women, incurably sick, old persons when there is none to take care of them.

2. Showing
or providing work to those who can work which includes job security and

income
guarantee.

3.
Standardisation of income for maintenance of life at an optimum level.

4. Protection against fall in
income due to any contingency.

independent
India .

During the
period of colonial India- if we look back to the period of pre – 1919 i.e.

pre-world
war I period, the then Indian Government started sensing the necessity to have

social
security benefits to the working class or working population when the factory

system
started growing with the establishment of Cotton mills in Bombay in 1851 and
Jute

mills in
Bengal in 1855. The conditions prevailing in these factories were inhuman.

The
working hours were excessive, provisions for safety were nil. Workers welfare,

holidays,
leave, medical care were taboos to talk about by the working class of that
period.

When the
Industrialists faced problems of their existence with the growing accidents in
the

industries
and factories and the resultant fear psychosis developed among the workers

leading to
unrest among the working population, they felt that there should be some

sort of
sops to be given to the working class. This ultimately resulted in the

enactment
of Fatal Accidents Act 1855 on the model of English Fatal Accidents Act

1846. This
act has its own limitations. Provisions of the Act were highly inadequate.

Moreover,
the Act does not permit certain dependants viz. brothers, sisters to claim

compensation.
The rate of compensation was also very much inadequate and uncertain.

The period
between 1919 and 1941 is worth noting in the history of social security in

the
colonial India. World War I had a tremendous impact on the attitude of
Government

and
society towards labour. With the cessation of hostilities the world turned to
peace and

reconstruction
which gave birth to the establishment of ILO. ILO adopted as many as

17
conventions and which later increased to 28 social security conventions. But of
all the

convention
the convention no.102 concerning the minimum standard of social security is

significant.
It is a comprehensive instrument covering almost every branch of social
security

provided
in minimum standard in respect of benefits payable in large number of

contingencies
like sickness, unemployment, old age, death, employment injury, invalidity

etc. India
has however ratified only the following five conventions viz. –

1)
Workmen’s Compensation (Accident) Convention 1925 (No.17)

2)
Workmen’s Compensation (Occupational Disease) Convention 1925 (No.18)

3)
Workmen’s Compensation (Occupational Disease) Convention (revised) 1934

(No.42)

4)
Equality of treatment (Accident) Convention 1925 (No.19)

8

5) Later
in 1962 the Equality of treatment (social security) Convention was

ratified.

The period
from 1920 in the history of working class is worth noting. This is the

beginning
of Trade Unionism in India. Workers started organising themselves for

redressal
of their grievances. In India as well as in several other countries the

agitations
launched during 1920 have led India to the passing of Workmen’s Compensation

Act, 1923.
Though this Act was passed on 5.3.1923 it came into force from 1.7.1924. The

object of
the act was to “eliminate the hardship experienced under the common
system, by

providing
prompt payment of benefits regardless of fault and with a minimum of legal

formality.”
(Law Commission of India, sixty second report on the Workmen’s

Compensation
Act, 1923, 1974, p.6.). After this Act, the Government of India enacted the

Provident
Funds Act, 1925. It was made applicable to Railways and Government

Industrial
establishments. During the same period i.e. in 1929 the Government of

Bombay
adopted the Maternity Benefit Act followed by the Central Provinces in 1930.

On the
recommendation of the Royal Commission on Labour, Ajmer Merwar in 1934, Delhi

in 1937,
Madras and United Province in 1938 passed maternity benefit legislation. In

addition
to these provincial legislations the Central legislation passed was for the
Miners

with the
enactments of Mines Maternity Benefits Act 1941. These legislations provided

for the
payment of Maternity benefit to the women employed in Mines. Another
legislation

aiming at
abrogating the doctrine of common employment and assumed risk was passed in

1938 by
enacting Employers Liability Act 1938. If we look at the recommendations of the

Royal
Commission on Labour which enquired during 1929 into the working conditions on

Industrial
Labour the concern for the welfare of the workers and provisions against old
age

can be
understood in its own words –

.Industrial
life tends to break down the joint family system. Those workers who,

at the
beginning of their industrial career, own a plot of land, are often unable to

retain
possession, and with the passage of the years the connection with the

village
became loosened. Workers in the mines are unable to save out of their low

earning
against old age. Those in intimate touch with the life of the workers know

something
of their misery in which they pass their old age. The necessity for

making
some provision against old age need to be emphasised. A few employers,

railway
administration and government department have made provisions for some

of their
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

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