Overview of the Social Security Scheme in India: ESIC Scheme

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Overview of the Social Security Scheme in India: ESIC Scheme

The report is divided into 3 sections
1) Overview of Indian Social Security.
2) ESIC scheme.
3) Case Study.
Social Security is both a concept as well as a system. It represents basically a system of protection of individuals who are in need of such protection by the State as an agent of the society. Such protection is relevant in contingencies such as retirement, resignation, retrenchment, death, disablement which are beyond the control of the individual members of the Society. Men are born differently; they think differently and act differently. State as an agent of the society has an important mandate to harmonise such differences through a protective cover to the poor, the weak, the deprived and the disadvantaged. The concept of social security is now generally understood as meaning protection provided by the society to its members through a series of public measures against the economic and social distress that otherwise is caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, occupational diseases, unemployment, invalidity, old age and death. The International Labour Organisation (ILO) defines Social Security as "the security that society furnishes through appropriate organization against certain risks to which its members are perennially exposed. The ILO concept of social security is based on the recognition of the fundamental social right guaranteed by law to all human beings who live from their own labour and who find themselves unable to work temporarily or permanently for reasons beyond their control. At the international level, the preamble of the Constitution of ILO also referred to the need and protection of workers against sickness, disease and injury arising out of their employment, pension for old age, and protection of the interests of the workers who were employed in countries other than their own. Thus, the right to Social Security was recognized officially for the first time. Subsequently, the UN General Assembly, while adopting the Universal Declaration of Human Rights also recognized the right to Social Security by stating that every member of the society has a right to social security. “Social Security” has been recognised as an instrument for social transformation and progress and must be preserved, supported and developed as such. Furthermore, far from being an obstacle to economic progress as is often said, social security organised on a firm and sound basis will promote progress, since once men and women benefit from increased security and are free from anxiety, will become more productive. There is considerable controversy about the social and economic effects of social security, and most of the current debate is focused on its supposedly negative effects. Social Security is said to discourage people from working and saving to reduce international competitiveness and employment creation, and to encourage people to withdraw from the labour market prematurely. On the other hand, social security can also be seen to have a number of very positive economic effects. It can help to make people capable of earning an income and to increase their productive potential; it may help to maintain effective demand at the national level; and it may help create conditions, in which a market economy can flourish, notably by encouraging workers to accept innovation and change. Social security measures are generally income, maintenance measures intended to provide a minimum living to the people when they are deprived of the same due to invalidity, unemployment or old age. The two basic elements of social security are provision of a ‘minimum living to those who are deprived of the same and ‘selective redistribution of income’ to a target group to reduce inequalities. Thus Social security is an instrument for social transformation and good governance. According to the ILO- World Labour...
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