A study on the Lics Schemes for the Weaker Sections of the Society with Special Reference to Social Security Schemes1

Abstract

IN INDIA, GROWTH and social justice have been accepted as the cardinal objectives of the planned economic development. It is a social commitment that springs from the Indian constitution, particularly the preamble and directive principles of the state policy, which visualises the creation of a social order for the promotion of the welfare of the people securing adequate means of livelihood for the citizens. As a step towards socialisation, the major decision was taken by the Government of India to nationalise the life insurance in 1956 and, ultimately, the Life Insurance Corporation of India came into existence on 1st September 1956 as a statutory institution set up under the Life Insurance Corporation Act, 1956, following the nationalisation of the life insurance business in the country. The main objective of the nationalisation of the life insurance business was to spread the gospel of the life insurance business even to the remote corners of the country. The UC of India has enshrined this great expectation as one of its main objectives: "Spread Life Insurance much more widely and in particular to the rural areas and to the socially and economically backward classes in the unorganised sector with a view to reaching all insurable pe'rsons in the country and providing them adequate financial cover against death and disability at a reasonable cost". Thus group insurance schemes were specially devised by the UC to provide insurance coverage to the large segments of the p opulation in the unorganised sector and in the rural areas at the lowest possible premium cost. In this respect, the four divisions of the U C of India in the State of Kera la took over the social responsibility of the Government to give insurance protection to the poor people and unorganised workers who are Living below the poverty line or are marginally above the line. A study of this type will help to identify the weaknesses of the schemes and to evaluate the difficulties faced by beneficiaries in getting the benefits from the concerned agency or authorities. This study will be highly useful to the policy makers in framing future programmes for the uplift of the downtrodden by overcoming the weaknesses of the existing schemes.