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Some of the important social security measures are given below.
1. Workmen's Compensation Act 1923—The Act provides for the compensation lo those workmen who sustain personal injuries by accidents arising out of and in the course of their employment. The Act applies to all permanent employees employed in railways, factories, mines, plantations, mechanically propelled vehicles, construction work and certain other hazardous occupations drawing a salary riot exceeding Rs 1,000. The Act does not cover those employees who arc in clerical or administrative capacity in armed forces, on casual work and to those who are getting a monthly salary exceeding R s. 1,000/-. The State Governments are empowered to extend the application of the Act to other classes of persons or diseases also. ,
The employer is liable to pay, under this Act, the compensation in case of personnel injury caused by accident arising out of and in the course of employment. No compensation is, however, payable if the incapacity does not last for more than three days or is caused by the default of the worker, not resulting in death. Besides bodily injury, compensation is also payable in the case of certain occupational diseases as given in Schedule III. The State Governments are empowered to add any other disease to the list of diseases.
The amount of compensation payable depends on the nature of injury and the average monthly wages of the worker concerned. For this purpose, injury has been divided under three categories (i) causing death, (ii) total or partial permanent disablement, and (iii) temporary disablement. The rates of compensation are fixed for all types of injuries according to wage-ranges. No compensation is paid for first three days if the period of disablement does not exceed 28 days.
The Act does not apply to those workers who are covered under the Employees State Insurance Scheme.
2. Employees State Insurance Act 1948—In order to provide sickness benefits to workers, the Employees State Insurance Act was passed in 1948. The Act applies to all non-seasonal factories run with power and employing 20 or more persons. It covers all types of employees — manual, clerical, supervisory and technical—not drawing a salary of more than Rs. 1600 per month (the amount has been raised from Rs. 1000 to Rs. 1600 p.m. w.e.f. 27th January 1985). The scheme is compulsory and contributory. Compulsory in the sense that all workers covered under the act must be insured and contributory in the sense that it is financed by the contributions from employees and employers.
The administration of the scheme has been entrusted to an autonomous body called the Employees State Insurance Corporation.
Insurance Corporation: The Corporation is managed by a governing body of 40 persons representing the Union and the State Governments, Parliament, employers and employees' organisations and the medical profession. This body elects a standing committee consisting of 13 members. A third body called Medical Benefit Council is constituted consisting of 26 members to advise the corporation on matters relating to medical benefits. State wise regional boards have also been constituted.
The scheme is financed by the Employees State Insurance Fund which consists of contributions from employers and employees, grants, donations and gifts from Central and State Governments, local authorities or any individual or body. The rate of contribution of employees depends upon its daily wages.
The scheme provides five types of benefits to the insured workers and their dependents. These benefits are:
(i) Medical Benefit—An insured person or (where medical benefit has been extended to his family) a member of his family who requires medical treatment is entitled to receive medical benefit free of charge. Such medical benefit may be given either in the form of outpatient treatment or as in patient treatment in a hospital which may be either run by the ESI Corporation or by any other agency.
(ii) Sickness Benefit—An insured person, when he is sick, is also entitled to get sickness benefit at 62.5% of the average wage which he would have earned had he been well and at work.
(iii) Maternity Benefit-An insured woman is entitled to receive maternity benefit (which is twice the sickness benefit rate) for all days on which she does not work for remuneration, during a period of 12 weeks of which not more than 6 weeks shall precede the expected date of confinement.
(iv) Disablement Benefit-An insured person is entitled to receive disablement benefit for any injury -arising out of and in the course of his employment. If the disablement is temporary for not less than 3 days, excluding the day of accident, he is entitled to receive compensation according to the First Schedule to the Act. If the disablement is preeminent-whether total or partial -he is entitled to receive compensation according to the Second Schedule to the Act. Artificial limbs are also provided at the cost of Corporation to those who lose their limbs as a result of employment injury. Spectacles, dentures, pace-makers, etc., are also provided to insured person free of cost, depending upon the nature of the case.
(v) Dependent’s Benefit—If an insured person meets with an accident in the course of his employment and dies as a result thereof, his dependent, i.e., his widow, legitimate (or adopted) sons and legitimate unmarried daughters get pension. The widow gets it throughout her life or till remarriage. The sons get it up to the age of 18 years or until they marry, whichever is earlier.
(vi) Funeral Benefit—The eldest surviving member of the family of an insured person who has died is entitled to receive payment for the expenditure incurred on funeral. However, this amount cannot exceed Rs. 100. The amount should be claimed within 3 months of the death of the insured person.
3. Maternity Benefits Act—Before Independence, many states passed the Maternity Benefits Acts but there was only one central Act in this respect-Mine's Maternity Benefits Act 1941. After independence two Central Acts-Employees State Insurance Act 1948 and Plantation Labour Act 1951-were also passed. With a view to achieve uniformity, Central Government passed in 1961 the Maternity Benefits Act. The Act applies to all mines, plantations and factories except those covered by the Employees State Insurance Scheme. The expectant mothers are entitled for 12 weeks leaves i.e., 6 weeks up to and including the day of delivery and 6 weeks immediately following that day, if they have put in 160 days service during twelve months preceding the date of expected delivery. A payment of Medical Bonus of Rs. 25/- by the employer if pre-natal and post-natal care is not provided free of charge.
4. Coalmines Provident Fund and Bonus Act 1948—The Coalmines Provident Fund and Bonus Act was passed in 1948 to make the old age provisions for all coalmine workers. The act was amended in 1950, 1951 and 1965. Under this Act two different schemes, i.e., the Coalmines Provident Fund Scheme and the Coalmines Bonus Scheme are in application and these schemes have been amended several times. Under the Provident Fund Scheme the employers contribute 8% of their total emolument to the fund and an equal contribution is made by the employees. In June 1963 a provision was made in the scheme whereby the members are allowed to contribute voluntarily up to another 8% of their emoluments. The scheme is administrated by a Board of Trustees, consisting of equal members of representatives of the Government, employers and employees. A Special Reserve Fund was set up to make the payment to outgoing members. A Death Relief Fund has also been set up to ensure a guaranteed minimum payment of Rs. 750 to the dependents off the deceased whose accumulations in the fund are less than the amount at the time of death. The employees Family Pension Scheme 1971 also applies to coalmine workers.
5. Employees Provident Fund Act 1952—The Act was passed in 1952 covering factories employing 50 or more workers in 6 major industries, viz., iron and steel, textiles, engineering, cement, paper and cigarettes. By an amendment in 1960, the scheme was extended to all factories of five years standing and 20 or more workers. An exemption has been made for new undertakings, for a period of 3 years, Establishments employing between 20 and 50 persons are also exempted for 5 years. The scheme is contributory and compulsory. The employees and employers contribute 6 '/4% of the total emoluments. The employees may, however, contribute 8 1/3%of the total emoluments. The rate of contribution of employees has been raised to 8% in some notified industries.
The scheme covers every employee drawing a salary of Rs. 1,000 or less and who has completed one year's continuous service and actually worked for 240 days in that period.
A SPECIAL RESERVE FUND was made for making the payment to outgoing members. A Death Relief Fund has also been set up for affording financial assistance for the tune of Rs. 1000 to the nominees of the deceased whose pay does not exceed Rs. 500 p.m. at the time of death. The PROVIDENT FUND ACT 1952 was amended in 1971 to provide for the benefit of family pension to the members of the deceased in case of their death while in service. A family Pension-cum-life Insurance Scheme was introduced in 1971.
6. Family Pension Scheme 1971—This was launched for industrial workers covered by Provident Fund Schemes. Under this scheme, a financial assistance i.e., pension is provided to workers monthly after retirement till he survives and to his widow thereafter till she survives. The scheme is financed by the Central Government and the provident fund.
7. Payment of Gratuity Act 1972—Under this employees in factories, mines, oil fields, plantation, ports, railways etc. are entitled to gratuity after completing 5 years of service at the rate of 1/2 month's wages for each completed years of service subject to a maximum of 20 months wages.
8. Old-Age Pensions Scheme—Various State Governments - U.P Kerala, Andhra Pradesh, Tamilnadu etc. have introduced a scheme of old-age pension to persons of 60 years of age and are poor and destitute. It is open to all.
9. Compulsory Group Insurance—The scheme was introduced by the Central Government with the cooperation of the Life Insurance Corporation and applies to certain groups of workers. The employees contribute certain amount monthly towards the premium. If the member dies while in service, an amount of Rs. 10,000 is paid to the heir of the deceased. The U.P. Government has introduced the scheme for teachers, lawyers and police employees. The Government of Haryana has also taken certain steps.
10. Deposit-linked Insurance Scheme 1976—This scheme was launched on 1st August 1976 for the benefit of employees covered under Employees Provident Fund Scheme, and Coalmines Provident Fund Scheme. Under this scheme, a legal heir of the deceased or the nominee under provident fund schemes will get the average amount of balance in the provident fund account of the deceased in three years preceding death or Rs. 10,000 whichever is less. This scheme is financed by the Government and the employers.
11. Social Security Certificates—Social security certificates were introduced on 1st June 1982. These certificates can be purchased by any person who is between 18 and 45 years of age, maximum for an amount of not exceeding Rs. 5000. The holder of the certificate will get three times of the amount invested after 10 years. There will not be any premature payment but in case where the holder of the certificate dies after two years from the date of purchase the legal heir can claim the maturity value of the certificate immediately.
