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In India, the Concept of Social Security was found to be well embedded in the institutions like joint family, religion, caste and village societies and in the customs, rights and responsibilities of individuals and occupational groups since time immemorial. According to Dharmashastras, the King was placed under an obligation to help orphans, aged, windows and those suffering from disease, handicaps and calamities. Ensuring education, training and employment using the resources of the state were also made obligatory on the part of the King as a part of Rajadharma. The provision for the deduction of a part of the wages of the employees and to provide the amount later according to his requirement and the provision for pension and family allowance were laid down in ‘Sukranitisara’ a compilation of the rules of Rajadharma. Further its allied topics indicated the collecting the grains from the people in normal times as an ‘insurance fund’ distributing them freely to the needy people during the famines and other calamities and undertaking public works as a means to provide employment. This substantiates the fact that the concept of Social Security, even in its modern sense, prevailed in ancient India. The Guilds, corporate organizations also seems to have contributed significantly in providing relief to the needy persons.
As the formal Social Security started evolving in the last quarter of nineteenth century and in the first two decades of the twentieth century across the world as an outcome of industrialization and urbanization, the foundations of the formal Social Security are laid in British India in the form of the Pensions Act, 1871; the Workmen`s Compensation Act, 1923. Later it gradually evolved after the independence with the legislations and schemes being framed to provide Social Security benefits for the citizens.
Social Security provides for health and economic protection to the people in the society by the government against the threats to leading a dignified life due to employment insecurity, unemployment, low wages, exploitations, old age, accidents, deceases, natural calamities, poverty, death of the bread winner, invalidity etc.
The ILO recommends the protection of the worker against sickness, disease and injury arising out of his employment, provision for old age and injury, protection of the interest of workers when employed in countries other than their own.
The National Commission on Labour (NCL) has recommended for formulation of unemployment insurance schemes to help the people who are unemployed involuntarily. Further, it recommended for evolving an integrated Social Security scheme and creation of a separate Social Security fund to finance various security measures. However, no efforts have been made so far in this direction.
The working group noted that the Second National Commission on Labour has been constituted by the Government to suggest rationalisation of existing laws relating to labour in the organised sector and suggest umbrella legislation for ensuring a minimum level of protection to the workers in the un-organized sector.
The Second National Commission on Labour was asked to take note of the developments that have followed liberalization and globalization, the demands that they make, and its effects on the working class, our industries, Government and all sections of the society; and to make recommendations on the laws and systems that we need to offer protection and security measures for our working population, to increase the economic efficiency and competitiveness in the industry.
The Second National Commission on Labour constituted in the year 1998 submitted its report to the Government of India on 29th June 2002. The Commission has made certain recommendations for introduction of changes in the Industrial Disputes Act, 1947 and Trade Unions Act, 1926. It has also proposed for enactment of new legislation called Labour Management Relations Act-2002, by consolidating Industrial Disputes Act 1947, Trade Unions Act, 1926 and Industrial Employment (Standing Orders) Act, 1946 to be applicable to establishments or undertakings employing 20 or more workmen. It has also recommended for enacting “The Small Enterprises (Employment Relations) Act, 2002 covering all aspects of employment including wages, social security, safety, health etc., applicable to all establishments employing less than 20 workmen.
The provisions pertaining to providing of Social Security are well laid down in the Constitution of India. The Directive Principles enshrined in Part IV of the Constitution of India are the fundamental guidelines for the good governance and to ensure Social Security reflected in the fundamental rights guaranteed under the Constitution of India. The Supreme Court of India has in catena of cases held that the Directive Principles and the Fundamental Rights as supplementary and complimentary to each other; and that Directive Principle are enforceable.
In spite of Constitutional guarantee of Fundamental Rights and the Apex court’s rulings, the rights of vast majority of people in unorganised sector remain superficial. The Social Assistance programmes in many States pertaining to old age pension, maternity assistance, destitute, widows are inadequate in their coverage as well as quantum of benefits. When social justice is the watch word of our Constitution, our country should not allow anyone to suffer deprivation or exploitation of basic necessities of life.
Social Security protects not just the subscriber but also his/her entire family by giving benefit packages in financial security and health care. Social Security schemes are designed to guarantee at least long-term sustenance to families upon the demise of the earning member in the family or in the event of such member suffering any inability or disability due to any reason. Thus the main strength of the Social Security system is that it acts as a facilitator. It helps people to plan their own future through insurance and assistance.
The Life Insurance schemes like Janashree Bima Yojana and the Aam Admi Bima Yojana also cover the poor. Further, the Rashtriya Swasthya Bima Yojana (RSBY) launched in October 2007 aims to provide health insurance for the BPL families. All the 600 districts of the country are expected to be covered by the scheme in a phased manner. The scheme envisages cashless transaction by introducing the provision of a smart card issued to the beneficiary. The insured amount for five members is per anum is Rs.30,000/-, which is to be shared by the Central and the State Governments in the ratio of 75:25. The State Governments are assigned the responsibility of planning the project and its implementation. The scheme is extended to benefit the building and other construction workers above poverty line also. The Government of Kerala has extended the scheme to cover the APL families also on payment of the full annual premium in addition to BPL families. The Rajeev Arogyasri Health Insurance Scheme of Andhra Pradesh is fully funded by the State government and aims to cover all BPL families in the state for the treatment of major ailments and surgeries.
The schemes of Central and State Governments have huge coverage on various sectors of the society and the budget spared for them is sufficient, but the misuse of such schemes must be avoided for effective implementation of the schemes. The Karnataka’s Yeshaswini Health Insurance Scheme, introduced in 2002 based on public–private partnership, provides health insurance to agricultural workers and small and marginal farmers in the State on the Payment of Rs.60/- per annum by the registered member and the Govt of Karnataka contributes Rs.30/ per annum per member. This scheme is being implemented successfully in the State and there is every need to frame such health insurance scheme for the small and marginal farmers by all the states.
Even though with the existence of various Social Security laws, the benefits and facilities prescribed there under do not reach all the persons coming within their scope. A vast majority of the workforce and also of the weaker sections do not enjoy the minimum protection and security even today in our country. Hence, there is a wider scope for more research and for better legislations on part of the government to ensure the constitutional goal of providing social, economic and political justice, and of equality of status and opportunity in the era of globalisation.
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