Eleventh Five Year Plan

152 Eleventh Five Year Planareas are covered. The most important and comprehensivescheme that has been launched is the JanashreeBima Yojana providing insurance cover of Rs 20000in case of natural death, Rs 50000 in case of deathor total permanent disability due to an accident, andRs 25000 in case of partial disability. The premiumfor these benefits is Rs 200 per beneficiary, of which50% of the premium, that is, Rs 100 is contributedfrom the ‘Social Security Fund’ and 50% contributedby the beneficiary/State Government/nodal agency.Janashree Bima Yojana is available to persons in the agegroup of 18 to 60 years and living below or marginallyabove the poverty line. The scheme is extended to agroup of 25 members or more. The limited reach ofthe schemes’ benefits to the unorganized workers andthe absence of direct link between a beneficiary and LIChave been the major drawbacks of these schemes.NEED FOR AN INCLUSIVE SOCIAL SECURITY SYSTEM4.2.15 More than 91% of India’s workforce consistsof informal workers working either in the unorganizedinformal sector (85%) or in the organized formal sector(6%). A large majority of them face the problem of‘deficiency’ or capability deprivation (of basic needs)as well as the problem of ‘adversity’ (arising out of suchcontingencies as sickness and accidents). As stated earlier,the social security schemes that are currently inplace hardly cover even 5 to 6% of the estimated numberof total informal workers of 362 million (as of1999–2000). With the exception of a small number ofStates with some social security cover for workers inthe unorganized sector, a majority of the States do notoffer any cover, especially for addressing such coreconcerns as health care and maternity. Among theCentral and State Government initiatives that addressthe social security needs of the population, there arevery few schemes addressed specifically for the unorganizedworkers. Kerala and Tamil Nadu are theonly States that offer some reasonable coverage ofboth old age pension for the aged poor and other protectivesocial security schemes for the workers in theunorganized sector. Some States like Maharashtra,Gujarat, West Bengal, Punjab, Haryana, Tripura,Karnataka, and Goa have a number of schemes forthe aged poor and vulnerable population, but exceptin MP, no State has social security schemes specificallymeant for the unorganized sector workers.ISSUES ON SOCIAL SECURITY IN THECONTEXT OF INCLUSIVE GROWTH4.2.16 The majority of workers in the unorganized/informal sector come from the socially backwardcommunities. Viewed in this light, the provision ofsocial security to these workers should be seen as aform of social uplift. Further, the absence of a viableand comprehensive social security arrangement is notmerely the problem of individual workers and theirfamilies. It also has wider ramifications for theeconomy and society. Economically speaking a workerwith no social security cover is likely to have moredomestic worries than the one with a reasonable cover.This, as noted above, debilitates the worker’s efficiencyand productivity. Lack of purchasing power, as aresult of low earning power, along with vulnerabilitieswill have the effect of reducing the aggregate demandin the economy. Socially, the demonstration effect ofthe prospering section is likely to lead the uncoveredsection to disillusionment, dissatisfaction, and disaffection.The overall well-being of the country asmeasured by health, education, longevity of life, andaccess to resources will be affected adversely, at timesmanifesting itself in crimes and other illegal activities.PROVISION OF SOCIAL SECURITY IN THEPERSPECTIVE PERIOD—RECENT INITIATIVES4.2.17 The Recent Initiatives on Social Securityconsist of the Unorganized Sector Workers SocialSecurity Bill, 2007, the Aam Admi Bima Yojana (AABY),2007, and Health Insurance Scheme for UnorganizedSector BPL workers, 2007. The major features are listedbelow:Unorganized Sector WorkersSocial Security Bill, 20074.2.18 The Unorganized Sector Workers Social SecurityBill, 2007, which has been introduced in the RajyaSabha, seeks to provide statutory backing to the varioussocial security schemes of the Central governmentincluded in the Schedule to the Act. These relate to:(i) life and disability cover, (ii) health and maternitybenefits, (iii) old age protection, and (iv) any otherbenefits to be determined by the Central government.The State Governments may formulate schemes for:(i) provident fund, (ii) employment injury benefits,(iii) housing, (iv) educational schemes for children,