Social Security Schemes: A Case for Universalisation

23 Pages Posted: 23 Dec 2015

See all articles by Charan Singh

Charan Singh

Indian Institute of Management (IIMB), Bangalore

Ayanendu Sanyal

Mahatma Gandhi Labour Institute

Kanchan Bharati

Centre for Culture and Development

Date Written: December 2, 2015

Abstract

Prime minister’s recent introduction of new social security schemes to ensure insurance and pension for all remains a laudable step. These schemes were launched on May 9, 2015 and are expected to enhance welfare of citizens, especially workers in unorganized sector. The schemes are Pradhan Mantri Suraksha Bima Yojna (PMSBY), an ultra-low cost accident insurance scheme, a life insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Atal Pension Yojana (APY), a contributory pension scheme with defined benefit outgo. The paper attempts to evaluate the nature of social security schemes in the field of life/accident insurance and pensions, with special reference to the recently announced schemes. Primarily, it argues that an introduction of contribution element in new schemes limits the coverage. It recommends the need for a properly crafted universal scheme for social security to achieve wider coverage. A defined flat benefit scheme financed through taxation in the areas of life/accident insurance and pensions remains a better option as it can guarantee wider coverage of social security.

Keywords: Universal pension, old age security, social security schemes

Suggested Citation

Singh, Charan and Sanyal, Ayanendu and Bharati, Kanchan, Social Security Schemes: A Case for Universalisation (December 2, 2015). IIM Bangalore Research Paper No. 498, Available at SSRN: https://ssrn.com/abstract=2707521 or http://dx.doi.org/10.2139/ssrn.2707521

Charan Singh (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India
080-26993818 (Phone)

Ayanendu Sanyal

Mahatma Gandhi Labour Institute ( email )

Drive-in Road
Memnagar
Ahmedabad
India

Kanchan Bharati

Centre for Culture and Development ( email )

XTI Campus
Sevasi Post
Vadodara, Gujarat 391 101
India
+91-265 2372001 (Phone)

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