Social Security- The concept

• The English word "security" originates from the Latin word "se-curus." "Se" means "liberation" and "curus" means "uneasiness."
• That is, "security" originally meant liberation from uneasiness, or a peaceful situation without any risks or threats.
• The English word "security" has a wide range of meaning including "to feel safe," and "to be protected" and is used to describe a situation without any risks or worries. 

First country to adopt Social Security code

• "Free Grain to Poor" in Roman Empire is perhaps the oldest recorded form of social security.
• In modern era with the rise of Nation States, the theory of 'Social Contract' forms the basis of state sponsored Social Security measures.
• As per the 'Social Contract' the individuals who join together to form a society or nation state have the right to be protected and provided for their welfare by the state.
• This forms the basis of 'Poor Laws' of 1601 in Britain and then the 'Worker's Compensation' and 'Sickness' allowance programmes by Otto Von Bismarck in Germany as the first modern examples of Social Security.

Germany became the first nation in the world to adopt an old-age social insurance programme, designed by Otto von Bismarck.

• Germany was the first country to introduce Social security scheme for food, lodging, hospital and funeral expenses of aged and disabled members.
• The expression appeared for the first time in a law in the Social Security Act of the United States that was enacted in 1935.
• The concept of Social Security was formalised by the adoption of 'UN's Universal Declaration on Human Rights'. Article 22 of this declaration can be regarded as the core premise for social security.
• It reads as - "Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality."
• Further Article 23 of the declaration says that - "Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection."
• International Labour Organisation (ILO) adopted 'Social Security Convention, 1952' to establish a worldwide agreed minimum standard on Social Security.
• Social Security contingencies as per this convention are-
  • Old Age Pension
  • Survivor's/Dependants Benefit
  • Occupational Injuries
  • Disability Benefits
  • Unemployment Benefits
  • Family Benefit for maintenance of family
  • Medical care
  • Maternity benefit
  • Social assistance for others in need
• The concept of Social Security founds a conspicuous mention in the Millennium Development Goals as well as Sustainable Development Goals.

Different definitions of Social Security

• Social Security refers to the mechanism that provides sustenance to those who cannot work and earn their living due to temporary or chronic reasons.
• According to International Labour Organisation,” Social security is the protection that a society provides to individuals and households to ensure access to health care and to guarantee income security, particularly in cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner”.
• It is a right which is generally guaranteed by some act or legislation to people for their economic and social security in the time of sickness, disability or old age.
• William Beveridge has defined social security as “a means of securing an income to take the place of earnings when they are interrupted by unemployment, sickness or accident to provide for the retirement through old age, to provide against loss of support by death of another person or to meet exceptional expenditure connected with birth, death, or marriage.
• The purpose of social security is to provide an income up to a minimum and also medical treatment to bring the interruption of earnings to an end as soon as possible.”
• According to Friedlander Social security is a security which is to be provided to the society in individual in order to deal with various event and occurrence in life.
• V.V. Giri defines Social security as “Social security, as currently understood, is one of the dynamic concepts of the modern age which is influencing social as well as economic policy. It is the security that the state furnishes against the risks which an individual of small means cannot, today, stand up to by himself or even on private combination with his fellow countrymen.
• Sinfield describes Social security situational i.e., as a state of complete protection against the loss of resources.

Types of Social Security

• Preventive Social Security - These are the schemes that are aimed at risk prevention i.e. reducing vulnerabilities that could lead to socio-economic marginalisation. It covers schemes like health care, vaccination, education, livelihood opportunities etc.
• Promotional Social Security - it covers schemes that provide assistance to socio-economically marginalised people. For example- reservations in education and jobs, rehabilitation, financial and other assistance etc.
• In simplest of words, Social Security is the mechanism that ensures 'Freedom from Wants' for the needy i.e. the mechanism that provides sustenance to those who cannot work and earn their living due to temporary or chronic reasons.
• Known interchangeably by different names like - 'Social Protection, 'Social Welfare' etc. it covers measures or action programmes aimed towards the welfare of vulnerable sections of population like
  • Children
  • Elderly
  • People with Disabilities
  • Women
  • Unemployed
  • Socially Marginalised
  • Farmers
  • Tribal Groups
  • Sex Workers
  • Persons living with HIV
• It is a pre-requisite for just and equitable society which acts as shock absorber and step towards protecting people against vulnerabilities, bridging societal inequalities, ending poverty and hunger and strengthening human dignity, social cohesion and democracy.
• Social Security covers diverse aspects within its ambit like - Pension schemes, unemployment allowance, Nutrition and Health related schemes, education and skill development schemes, providing essential utilities at subsidised rates etc.

• Social Security has been defined as “the security, which the society provides through appropriate organization against certain risks to which its members are perennially exposed”. The risks are broadly classified into two categories:
• Physical Risks: Sickness, invalidity, old age, maternity, accidents and death.
• Economic Risks: Unemployment, financial losses, etc.

Social Security in India

• India can be regarded as an early starter in the field of Social Security and as early as in 1923, the Workmen's Compensation Act was enacted in India.
• As India is a founding member of both ILO as well as UN, the principles of Social Security highlighted by these institutions find their mention in the Indian constitution.
• The Article 41 of Indian Constitution expressively talks about Social Security. It says - 'The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.'
• This Directive Principle of State Policy though not legally enforceable, forms the moral and legal basis for several of the Social Security measures and schemes India has initiated for its vulnerable population.
• Today, in India, in general the following categories of security are available to the citizens:
• Civil Services: Pension, Gratuity, Provident fund, family pension and comprehensive medical care (CGHS Scheme).
• Armed Forces: Pension and Insurance
• Industrial Workers: Benefits like maternity, sickness, medical disability, dependent and funeral expenses (ESIS).
• Public: Life Insurance, Accident Insurance, Medical Insurance (Mediclaim), Fire Insurance, Crop Insurance, Theft Insurance, and Public Provident Fund.

Approaches: Social Assistance, Insurance and Defense

• The three main areas/approaches to social security are:
• Social Assistance (non-contributory)
• Social Insurance (contributory)
• Social Defence (protection)

Social Assistance

• The beneficiaries do not contribute to it and the benefits are provided as a matter of right and without any “means test”. 
• Whereas in charity or poor relief (different from Social assistance), there is some stigma about them and are generally granted after a “means test”.
• The examples of social assistance are old age pension, widow pension, assistance to leprosy patients, family planning assistance, etc.

Social Insurance

• The beneficiaries also contribute to it in addition to State and others.
• Example Life Insurance, Accident Insurance, Medical Insurance (Mediclaim), ESI Scheme for workers, Crop Insurance, Theft Insurance, Fire Insurance, etc.

Social Defense

• It is mainly protection of society from anti-social, criminal conducts.
• Example Eradication of beggary, gambling control, prostitution control, welfare of prisoners, anti-dowry measures, suicide counselling, etc.
• In conclusion, social security considers three essential elements viz., security of employment, security of income and security of right to work.
• This forms the basis for social welfare in industrialized and urbanized economies.