7/27/2019 A unique social security scheme for the organized workers.pdf

1/3

TheMonthly Magazine June 2012 f.50/-

. t T ~ tP ~ t tU ~ T It\tS

I e v e 0 m e nI t i s e s t i m a t e d t h a t t h e r e w i l l b e

a d e m a n d f o r 5 0 0 m i l l i o n s k i l l e d

w orke rs by 2022 w he reas t he supp ly

w ill on ly be 122 "II"on Entrepreneurship

M G NR EG S

Democracy does not imply

only elections

Sustai nable development

Social security

7/27/2019 A unique social security scheme for the organized workers.pdf

2/3

S O C I A L S E C U R I T Y

State

Presently, Employees' State

insurance Scheme of Government of

In dia is a u niq ue sche me wh ich

provides medical care in the form of

primary, secondary and tertiary

ser vice s with no ca p t o wo rk ers

e ng ag ed in fa cto rie s a nd o th er

establishments with a single

contribution of 1. 75 % employees'

contribution and 4.75% employer's

contribution. The facilities are avail

able in 700 corporate hospitals in

various States, besides 149 hospitals

and dispensaries run by ESI scheme

across the country.

The uniqueness of the scheme is that

it provides life insurance along with

health insurance in the form of cash

benefits for sickness for 91 days and

for specified long-term disease up to

720 days. The maternity benefit

under the scheme is o ne of the

highest in the country payable for 84

days and another 4 weeks in certain

agencies. It also provides disablement

benefit in case of loss of earning

capacity due to accident and

importantly Dependants Benefit on

death of i nsured worker to the

spouse till she is alive and to other

dependant family members with

some con ditio ns. A few h is tor ic

decisions taken in the recent times

have really empowered the workers

covered under ESIAct like payment of

In the recent concluded Indian Labour

Conference, it was universally agreed

by all stakeholders of the working

population of the country-Trade

Unions ,Employers, State

Governments and the Central

Government-that there is a need for

minimum socia l sec ur ity fo r t he

unorganized workers which

constitute 94% of the working

population and to strengthen existing

social security regulations i.e. ESI

scheme and Epmloyees' Provident

Fund Organization (EPFO) for the

organized workers.

The key issue is to have a model that

wil l reach out to the unorganized

workers working mainly as contract or

casual basis in various industries and

establishments and importantly to

the increasing groups like Asha and

Anganwadi workers and other

similarly placed women workers in

the country. we do expect to have a

cost effective model which can be an

efficient delivery mechanism and easy

monitoring system to achieve

objective of "Social Security for all by

2020."

At present, Rashtriya Swasthya

Beema Yojna catering to mainly BPL

workers with limited access to health

care and total lack of cash

compensation during illness, accident

a nd de at h. A m od el s imila r to ESI

Scheme could be

Medical care in the

form of primary,

secondary

and tertiary services

are availablein 700

corporate hospitals

in various

States,

besides

149 number of

hospitals and

dispensaries

run by

ESIScheme

across

the country

A Unique Social security scheme

for the organised workersIt provides life insurance along with health insurance in the form

of cash benefits for sickness adopted by the Central andGovernments.

B. K. Sahu

Insurance Commissioner, ESIC

e n T R tP R e n E U R l1 / ' \ ts J U n f 2 0 1 2

7/27/2019 A unique social security scheme for the organized workers.pdf

3/3

E S I S c h e m e s o c i a l s e c u r i t y f o r w o r k m e n

An y ti me An y Wher e

. . . .

-

l(Nni

II ,s.e.197'

P e r m~ = ~ : : M " ; .o-., ,1X lQ lI

The employers' share of contribution is paid

by government for 3 years for providing

employment to persons with disabilities

drawing monthly wages up to Rs. 25,000

730 days (up to 2years for

specified 34 diseases)

Primary, secondary and tertiary with no cap.

91 days - 70% of the average daily wages in a year.

Based on loss of earning capacity as long as

disability lasts. About 90% of the average daily

wages.

50% of wages up to 12months of unemployment

on account of closure, retrenchment and

permanent invalidity of not less than 40% arising

out of non- employment injury.

On death of IP/IW to the wife till she is alive/

remarriage and to other family members as

per conditions w. r. 1 . age/marriage. About

90% of the average daily wages.

84 days + 4 weeks (due to complications arising

out of pregnancy, confinement, premature birth

of child etc.) almost 100% of the average daily

wages.

Incentive Scheme for

persons with

disabilities

Medical Care

Maternity Benefit

Sickness Benefit

Extended

Sickness Benefit

Dependants Benefit

Permanent Disablement

Benefit / Temporary

Disablement Benefit

Rajiv Gandhi Shramik

Kalyan Yojna

(Unemployment

Allowance)

S O C I A L S E C U R I T Y

providing both health and cash

benefits like ESIscheme we may have

to evolve a model on similar line for

providing minimum health care and

limited cash compensation in the

contingencies of sickness,

disablement and death. The think tank

of providers of social security services

including Planning commission should

come forward so that their dream of

social security for all by 2020 is

realized .

cash benefits through ECS so that

there is no interface with providers of

services thereby eliminating the scope

for harassment and ensuring delivery

of cash benefit at their door steps.

Some other unique decisions which

can be called as good practices are no

requirement of claim for Disablement

and Dependants Benefit and

submission of live certificate once in a

year and importantly revising benefit

rates with cost of living index. While

there is a demand for increasing

minimum pension which is as low as Rs

.250/ - in EPFO,ESIhas taken a decision

fixing minimum dependants benefit

(family pension) to Rs.1200 per monthw.eJ 1.3.2012. Recently, initiatives

taken by ESI Corporation for coverage

of Cine Workers engaged in Film and

TV production is worth mentioning

here.

With adoption of Information

Technology starting from registration

of workers, delivery of services to the

issue of smart card for Any time Any

Where is a significant step which will

ensure that technology driven services

will not only improve efficiency but

ensur e hassle- free services to

beneficiaries of the scheme.

As on today ESI Scheme covers 1.55

million workers with 40 million family

members and one significant aspect of

the scheme is that it covers all types of

workers including casual/contract

workers working in factories and other

establishments covered under ESI Act

and popularly it istold that

"Pay a h an df ul o f c on tr i bu ti on b ut

take abagful of benefits."

While organized workers are having a

self-contained benefits scheme

Views expressed are personal

E n T D tD D t n tu R 1 1 /'1 5 J U n E 2 0 1 2