Compensation Claims--Judicial Prescription to Clean the System

Andhra Pradesh High Court has expressed serious concern over the state of  affairs in the   road accidents and cases relating to payment of compensation.  In its judgment relating to a compensation case,(M.JayannaVsRadha Krishna Reddy,2003)  the Court expressed horror over the state of  affairs.  The Court   observed that  insurance  companies are  “custodians of public money” and  cases relating to compensation has become sort of “chance game” due to the shoddy  methods  of the counsel appearing  for the parties,  unethical practices of the private medical practitioners and  unprofessional approach of the police officers  handling accident cases “having scant regard “ for provisions of the  Motor Vehicle Act.     

Writing the judgment, Justice B Swamy said that  counsel appearing  for the parties had “poor legal expertise” and  never examined the proper person to prove their case..  Some Judges  were  giving compensation at their whims and fancies, without reference to the law laid down by the superior courts and applying their mind as to the evidence produced by the claimants reflected the true facts of the case of case suffers from lack of material particulars.

As per the judgment the police were not taking minimum  care in investigating the crimes to bring home the guilt of the accused and the prosecution was  conducted for “statistical purpose” than to  control the increasing crime rate.   

Normally the injured person is treated  at the nearest government hospital and the details of the injury sustained by the claimant is kept in the case-sheet maintained by  that hospital.  “The counsel appearing for the claimant nor the counsel representing the insurance companies, do take any care or bother to summon the doctors concerned, who had in fact treated the injured or the dead person,” the judgment said.

According to the judgment, private doctors were taking advantage of the situation and “obliging the persons approaching   them with false medical certificate, knowing fully well that  they have not treated them at any point of time.”  It further said that “in the absence of any proper check on such unscrupulous elements and proper assistance from the counsel, this count is unable to know whether in fact, the accident took place at all and whether records placed before the court are genuine or have been brought into existence with the connivance of the policy, with a view to embezzle the public monies  in the garb of compensation.”                    

The Court further observed that it was not in a position  “to know whether the person approaching the courts and claiming compensation are the persons who really suffered  injuries or they are the real legal heirs of the deceased persons.”  Explaining the lacunae  the Judge said  the police who were expected to send the F.I.R to the concerned Motor Accidents Claims Tribunal within 30 days from the date of receipt of  first information as well as the charge-sheet along with all relevant documents, after completion of investigation, as required under Section 158(6) of the Motor Vehicle Act, 1988,  “have failed miserably in their duty” to comply with the statutory provisions. 

In the instant case, the claimant on 10.05.1998, while travelling in a lorry along with his goods, the lorry turned turtle and he sustained fracture injuries.   He claimed to have taken treatment in a government hospital for eight days.  Instead of brining proof from an orthopedic surgeon, he submitted a wound certificate  issued by the Casualty Medical Officer.  The bills submitted to support his cost of treatment amounting to Rs.25,000/-  some medical bills were submitted and the date of the bills varied from the period of treatment.  Even the name mentioned in the medical bill did not reflect the name of the claimant. 

A doctor practicing  at the Government General hospital, Kurnool, certified that  there was ” nonunion of  medial malleolus and estimated the disability at 15 to 20 per cent. “   But the doctor had not prescribed  any medicines  nor treated the claimant for the condition, which again raised questions  about the authenticity of the medical certificate, said the judgment.    As the medical certificate was not categorical  or conclusive above the nature of disability i.e., temporary or permanent, the  Judge deemed it appropriate to  “consider the matter afresh” to ascertain the genuineness of the claim.

The case was sent to the Claim Tribunal for examination of the doctor, who treated the claimant  at the Government hospital at Kurnool.  Further, the Judge has directed  the Inspector General of Police to make it mandatory  requirement to send the F.I.R. within thirty days, as well as the charge-sheet after completion of investigation, reflecting facts of the accident as required under the Motor Vehicle Act, to the Claims Tribunal having competent jurisdiction over the area, where the accident had taken place.

The Court made in mandatory for the investigating officer  dealing with the accident to  inform the  local field officer of the insurance company with which the vehicle  involved in the accident is insured so that he can make his-own  enquiries about the accident. For that purpose, all the insurance companies have to furnish the details of their local Field Inspector to the concerned police station. 

The judge said the Motor Accidents Claims Tribunal hereinafter shall immediately call for the F.I.R. and see that the investigating officers file the charge-sheets and in cases  where they have not received the F.I.Rs they shall insist on sending them, as required under Section 158(6) of the Motor Vehicle Act, 1988 forthwith.

The Court has directed the Tribunal to keep a watch on the doctors giving evidence in accident cases and if the  doctor “is a stock witness” matter should be intimated to the Indian Medical Council for taking suitable action. After a lapse of time if a private doctor treats any  person involved  in the accident, he shall maintain the record relating to the treatment given by him and must justify his action in treating the patient in the court when summoned to give evidence.

 If the claimant has filed the  claim petition at his native place, the concerned Tribunal shall call for the records relating to the investigation from the Tribunal having jurisdiction over the place where the accident had taken place.  

Disposing the case, Justice  B. Swamy said, “most of  the empanelled advocates in the lower courts are not representing their cases properly and not taking even minimum  professional care required to protect  their interest with the result most of the compensation cases are going in favor of  claimants and against the respondents.”  The judge wondered  whether “there is a racket working in the direction of creating fictitious and non-existent accidents for claiming large amounts as compensation and defrauding  the insurance companies.”

Third  party motor claims refer to the claims of compensation for injury or death of the driver or passengers in a vehicle, in case it meets with an accident.  It is a bleeding portfolio for general insurance companies.  In 2010, the industry took a hit of Rs.10,250 crores on account of commercial third party motor pool loss, according to figures published in the IRDA web site.

BUDGET 2012-13 AND THE INDIAN HEALTH SECTOR

The challenge posed by the rising cost of health care in India, is accepted at all levels.  Non other than the Prime Minister Dr.Manmohan Sigh said the impact of high medical costs placed an unconscionable burden on the poor.  Speaking at a health summit, he said : “We are therefore, focusing our attention on social security of the poor with regard to their health care.”

It does not require mention that the health status of India’s people is poor.  There  are economic social and regional differences but the larger picture is one of high mortality(of infants, children and mothers), low life expectancy and  high morbidity.  The limited volume and quality of public services has been driving people to private health services.  These are booming, but the large out of pocket expenses on health care and drugs are imposing a heavy burden on patients.  Such expenditure is estimated to push 30 million people a year into poverty.

Dr. B Ekbal public health activist, author and former Vice Chancellor of  Kerala University says : “Cost of treatment has been increasing alarmingly as a result of the entry of super  and multi-specialty hospitals. Lack of government intervention has led  many private hospitals to do anything to make profits in the name of check ups or supply of medicines.”

In the context of neoliberal policies, the growth of the private medical sector in India has not been based on any planned attempt to address health needs.  Being ‘private’ by definition the sector has to function in accordance with the logic of the market.  The market(for all goods and services)does not, in the long term, allow the survival of the ‘inefficient’ entrepreneur.  In the medical sector the efficient entrepreneur is not necessarily one who provides the best service, but often the one whose profit margins are the healthiest. 

 

The logic of the market, in the medical care sector has produced a situation where now huge corporate chains are replacing smaller players. It has brought in its wake more centralization of services and  a higher degree of pooling  of skills and expertise in a few centers.   This goes against the established tenets of public health and primary health care, where it is understood that better health outcome is a function of a wide spread  of facilities and care providers, across the entire population. 

While the services of specialists and even super-specialists are underutilized in urban areas, the deficit of specialists is as high as 80 per cent or more in the public health system, especially in rural areas. On the other hand, we subsidise the medical care needs of countries in Europe and North America by exporting trained physicians, most of whom are trained at public cost.

The rapidly growing industry of medical tourism in India, now harness highly trained Indian medical professionals to treat rich medical tourist from developed nations.  While our public health system remains grossly understaffed, we do not train an adequate number of other health workers.

In this context, experts who analysed the social sector components of the Union Budget 2012-13 concluded that “the budget has failed to provide a vision or a clear direction on the policy front as far as the social sector is concerned.”( Business Standard 19.03.2012). On the healthcare, Finance Minister Pranab Mukheerji announced only an incremental  increase of about Rs.2700 crores in the allocation for the National Rural Health Mission.

The 12^th Five Year Plan envisages that the government’s health care spend will from 1.90 per cent to 2.50 per cent of GDP.  A large part of this would be under public-private partnerships(PPP). The High Level Expert Group of the Planning Commission on Universal Health Coverage for India has laid out a clear road map. The expert group chaired by Dr.K.Srinath Reddy proposed a far-going reform in several areas.  On funding, it put the onus on the government to mobilize the resources necessary  from taxation. The recommendations of the expert group, including the emphasis on making essential medicines available free to patients through state funding,  is timely. 

A book titled “Morbid System—Health Under Capitalism” edited by Leo Panitch and Collin Leys, convey the message that mindless privatization of the health care delivery system in various countries, which is the  result of neoliberal globalization is counter-productive to achieving a reasonable level of health.

Consistently low levels of public health expenditure explain the slow progress in addressing the challenges of Infant Mortality Rate(IMR), Maternal Mortality Rate(MMR) and other key health indicators.   The Out of Pocket(OOP) expense on health care at 75 per cent is one of the highest in the world and it is imperative for the State sending in health care to rise in order to alleviate the burden on the economically weaker sections of the society.

The Rashtriya Swasthya Bima Yojana(RSBY) the health care scheme meant for the Below Poverty Line(BPL), now being extended to the above poverty line section, provides Rs.30000 per family to cover treatment charges.  Several States have evolved their own distinctive health insurance schemes. Though RSBY received no mention in this year’s budget, it has seen a 45 per cent increase in allocation. On the whole, the Budget provides a marginal boost to the health sector.

KOZHIKODE RESOLUTIONS TO REVITALISE CPI(M)

                                      

The 20^th Party Congress of the Communist Party of India(Marxist) virtually transformed the historic city of Kozhikode with red flags, hoardings and tastefully decorated venue at Harkishan Singh Surjit -Jyothi Basu Nagar. The Communist Party History and Book exhibitions and cultural events and seminars gave a festival ambiance  to this Left  bastion.  The Party organ Malayalam daily Deshabhimani , had been informing readers in great details about Party Congress  with special reports and supplements.

While the  Party Congress was going on, veteran Polit-bureau member Sitaram Yechury was asked in the NDTV panel discussion, whether the occasion demanded a soul-searching for his party. He responded by highlighting how his party espoused the cause of  ‘aam admi’ by pressurizing  the central government to enlarge the scope of  MNRGA, significant improvement to Food Security Bill and many other programmes that benefited the common man. He also added that his party did not get the electrical dividend due to the media manipulation.

A close reading of the organizational  and political reports along with resolutions passed at the congress reveal  the party’s concern for the working class—both  in the organized and unorganized sectors and the weaker and oppressed  sections of the society.  The party congress has called upon the peasants of the country to be part of a united struggle of the working people against liberalization and imperialist-led globalization instead of resorting to suicide.  The resolution said that this struggle was for decent standard of living and better society.  Suicide is not the solution; struggle is the way, it said.

In the wake of the continuing phenomenon of distress-induced suicide of the farmers, the resolution  demanded the government should restore the subsidies and intervene in the supply of seed and other agricultural inputs by establishing fair price retail outlets in rural areas. The resolution quoting NCRB said, between 1995 and 2010, there were a total  of 2,56,913 suicides of Indian farmers.  The disturbing phenomenon of farmers suicides also returned to  Kerala and West Bengal according to the resolution.

It demanded that  the recommendations  of the National Commission for Farmers be implemented; subsidies restored; the public distribution system expanded; a special sub-quota for agricultural credit by banks to small and marginal farmers created; a comprehensive crop insurance scheme introduced; and a found opened to assist farmers affected by crop losses.

Another resolution adopted at the Party Congress criticized the central and some state governments for imposing contractorisation of workforce and imposing ban on new recruitment. The vacancies  due to retirement of employees  were  never filled.  This has resulted in thorough  exploitation of workers, by keeping wage costs down and denying workers their minimum rights. It said the National Sample Survey data for 2009-10 showed a sharp decline in employment growth from an annual  rate of 2.7 per cent during 2000-05 to a mere 0.8 per cent during  2005-10. Growth of non-agricultural employment fell from  4.65 per cent a year to 2.53 per cent, even when the GDP clocked 8 per cent, the resolution said.

“In the name of making industries competitive and attracting investments, the Central government has permitted  gross violation of the Contract Labour(Regulation and Abolition) Act 1970, by the private and public sector,” the resolution said.  The law prohibited contract employment in jobs of perennial nature.  The practice was widespread in the manufacturing, service and government sectors and rampant in the unorganized sector.   Through another resolution, the  Party Congress supported the struggles of contract workers and trade unions demanding an end to the “exploitative” contract system in regular jobs, and amendments to the Act to regularize the services of workers in jobs of perennial nature.  Till then, such workers should be paid wages equal to those of a regular worker, along with social security benefits.

The Political Review Report, adopted unanimously  at the Congress highlighted party’s tactical agenda for the coming three years, to fight resolutely against neoliberal policies at all levels. The fight would be against the Congress Party, which had been pursuing neo-liberal policies aggressively at the behest of imperialist forces, as well as BJP.

The CPI(M) would rally all the patriotic, democratic sections against the UPA government’s strategic alliance with the US and would mobilize the people  pursue and independent foreign policy. The party would strive hard to expand its mass base and influence  in order to strengthen its independent role.  The mass organizations should become independent forums for mobilizing the people and organizing them .  The participation in elections and activities in the parliamentary forums should be dovetailed to the development of mass movements and the political mobilization of the people, the resolution said.

It said the party would give priority to its work among the basic classes.  The lag in the work amongst  the peasantry and the rural poor in building class and mass struggles had to be overcome. The specific issues of the Dalits, minorities, tribals and women would be taken up as part of the general democratic platform. In a resolution adopted  at the Congress, party expressed serious concern at the reckless loot of the mineral resources  by the corporate.  A release issued by the organizing committee quoted Polit Bureau member Brinda Karat as saying: “We want  a legal mechanism to ensure that tribal rights over the mineral wealth are upheld.”

The resolution on  partisan poverty estimates described the cut-offs set by the Planning Commission to define poverty in the country as a cruel joke and accused the central government of imposing a regime of urban reforms reflecting the policies of the World Bank.  It said the commission had set Rs.22.40 a day for an adult in rural areas and Rs.28.65 in urban areas in 2009-10 as the poverty cut-offs.  Any one spending more than that was considered not poor.

The resolution on “Violence Against Women” expressed concern over the steep escalation in crimes against women and said it was alarmed by the “barbarity and savagery” of atrocities being committed at a time when women were entering public life, institutions of leaning, and diverse work spheres in increasing numbers. “The crude commodification of women and the portrayal of women as sex objects in the mass media is highly objectionable and is not only demeaning to women but creates an environment which trivializes the crime of sexual harassment and violence against women,” it said. The failure to punish the criminals and the long delay in the judicial process is undoubtedly one of the reasons for the increase in rapes and gang rapes being witnessed in several parts of the country,” the resolution said.

The resolution of Ideological Issues sought to map an Indian road to Socialism even as it attempted to learn from the experience of all socialist struggles. A special bulletin issued by the organizing committee quoted General Secretary Prakash Karat as having clarified that CPI(M)  would not emulate any foreign model, neither Chinese nor Latin American, as the corporate media had been trying to project. The resolution  looked at the Chinese experience, both positive and negative, with an open mind. It appreciated the anti-imperialist direction of popular governments in some Latin American countries.

 An analysis of the media reports quoting the senior CPI(M) leaders reveal that there was  convergence of views in the matter of “strengthening the party and working for Left unity to recapture its strongest bases in West Bengal and Kerala and to expand its base and political influence in Andhra Pradesh and Tamil Nadu.”  The 734 delegates, 70 observers and 11 veterans who attended the party congress, through the week-long deliberations gave shape to a detailed plan on revitalization of the party at the grassroots.  Validictary meet of the Party Congress was a grand spectacle with thousands of red volunteers and a sea of humanity  converging at Kozhikode beach.

In an editorial comment Deshabhamami daiy said : “The message of the Party Congress is that  struggle against social injustices created by the neoliberal policies of the central government will be the main agenda of the CPI(M) in the coming days.”

Kerala State General Insurance  Employees Union(KSGIEU) comrades led by state president Com.Ajayan were part of the Congress, at the Book/Party History/Peasant Revolts  exhibitions, distributing  copies of PAG bulletin and   helping visitors at the venue. PAG bulletin in Malayalam, is a much sought after publication  by cadres and comrades   among  Left parties in Kerala, for its exhaustive and  lucid coverage of    ideological issues and policy matters.

2011 YEAR OF UNPRECEDENTED NATURAL DISASTERS

Unprecedented natural disasters and accompanying catastrophes marked the year 2011. The unfortunate events inflected huge financial losses and took heavy human toll. Various reports and analysis put out by the global reinsurers and international organisations highlighted the macabre events. Earthquake caused maximum damage. The first decade of this century witness some of the worst natural disasters.
According to a press release(15.12.11) issued by Swiss Re, Zurich based global reinsurer, 2011 was the year with “the highest catastrophe-related economic losses” in history, at USD 350 billion. The insurers took a hit of USD 108 billion. This is more than double the figure of USD 48 billion in 2010.(www.swissre.com)
The earthquake in Japan accounted for most of this year’s economic losses. More than 30000 people lost their lives due to catastrophes in the first eleven months of the year, said the report from the sigma team of Swiss Re. “2011 is going down as another year of very tragic and costly earthquakes. Unfortunately earthquake insurance coverage is still quite low, even in some industrialized countries with high seismic risk, like Japan,” Kurt Karl, Chief Economist of Swiss Re, was quoted as saying.
If Japan had been as well insured as other countries with high seismic risk, such as New Zeland, the overall industry tally would have been much higher. In addition to the earthquake in Japan and New Zeland, severe flooding in Thailand, Philippines and Australia triggered above USD 10 billion in insurance claims.
A press release(4.1.2012) from the Munich based German Re-insurer, Munich Re, quoted Torsten Jeworrek head of Geo Risk Research, as saying:”It is the insurance industry’s task to cover extreme losses as well, to help society cope with such events and to learn from catastrophes in order to protect mankind better from these natural perils.” There were 820 loss-relevant events in 2011. Nearly two-thirds of economic losses and about half the insured losses stemmed from geophysical events, principally from the large earthquakes.(www.munich-re.com)
Normally , it is the weather-related natural catastrophes that are the dominant loss drivers, Munich Re said. On average over the last three decades, geophysical events accounted for just fewer than 10% of insured losses. Around 70% of economic losses in 2011 occurred in Asia. In the context of severe earthquakes, Prof.Peter Hoppe, Head of Munich Re’s Geo Risks Research unit warns town planners to be very cautious about seismic risks and to give serious consideration to modern building codes and high standards.
Reinsurers also expect further claims from the US hurricane season and the winter storms in Europe. Floods in Brazil in January took more than 900 lives. 1600 tornadoes battered US states in the South and Midwest and hurricane Irene wreaked havoc on business and communities according to Lloyd’s Report 2011. (www.lloyds.com)

September 18, 6.9 earthquake in Sikkim, claimed more than 100 lives, was felt over a large area, according to a report of the National Geophysical Research Institute. On the morning of 30 December, Cyclone Thane battered India’s south-east coast causing thousands to flee from their homes. In its wake, the cyclone left an immense trail of destruction and devastated the beginning of 2012 for many. Gale force winds and torrential rain brought down telephone and electricity lines, uprooted trees, and damaged more than 200000 homes in four districts of Tamil Nadu. Forty seven people lost their lives in house collapse.(Red Cross Report,2011)
Floods in the Indus, triggered by the heavy monsoon rain , devastated vast swathes of land and rendered millions homeless, in Pakistan, in August, 2010, killing nearly 1500, and laid waste, 160000 square kilometers of land.(Frontline Sept.10, 2010)
The 2004 Indian Ocean earthquake, occurred on December 26, resulted in a series of devastating tsunamis along the coasts of most landmass bordering the Indian Ocean, killing over 230000 people in fourteen countries, and inundating coastal communities with waves up to 30 meters high. It was one of the deadliest natural disasters in recorded history.(wikipedia.org/wiki/2004_IndianOcean_tsunami.)
The 2010 January 12 Haiti earthquake was a catastrophic magnitude 7.00, with epicenter near the town of Legane about 25 km West of Port-aue-Prince. On February 10, the Haitian government reported the death toll at 230000. The number of injured was estimated at 300000 and an estimated 1 million were left homeless. Sigma report said Hurricane losses from Katrina, Wilma and Rita contributed to the 2005 claims.
Among all the continents, Asia is considered to be most vulnerable to disasters. During 1991 to 2000, Asia accounted for as much as 83 per cent of the population affected by disasters globally. India is highly prone to natural disasters, and the country has experienced very severe natural disasters, at regular intervals. Among the various types of natural disasters affecting different parts of the country floods, cyclones, earthquakes and droughts cause maximum damage to life and property; and heat wave, cold wave, avalanches, landslides, fire and pest attacks are also taking heavy toll on life and property at regular intervals. The Latur earthquake of 1993-94, the Orissa super cyclone of 1999, the Bhuj earthquake of 2001 and the Tsunami of December 2004 are some of the most severe natural disasters that have struck the country in the recent past.
Lloyd’s Chief Executive Officer Richard Ward was quoted as saying:”Looking back over a year when earthquakes, windstorms and floods have devastated much of our planet, business and governments alike need to ask themselves if they really are as well prepared for these risks as they assume and, if not, decide the steps they need to take to ensure their perception and their reality prove a better match in 2012.”
The Asia-Pacific Disaster Report 2010, prepared by the UN Economic and Social Commission for Asia and Pacific and the UN International Strategy for Disaster Reduction, notes that natural disasters have disproportionate impacts on human development in the region. Future disaster risk reduction strategies in the region should be considered within broader development frameworks and multi sect oral budgetary process that address economic inequalities and social and environmental imbalances.

An Ominous Message from Manesar

In a joint memorandum of Central Trade Unions, submitted to the Finance Minister, in February 2011, as part of the pre-budget consultation, union leaders have highlighted the inhuman exploitation of contract labourers "who died in industrial accidents, be it the BALCO chimney collapse, fires in Agra shoe companies, in Bhushan Steel or construction workers, including those employed in the prestigious Delhi Metro project and in the construction related activities of the Commonwealth games."

Trade unions observed that contractualisation and outsourcing have become so rampant in the private and public sector undertakings and government departments. Millions of workers are at present employed as contract workers in regular jobs, to perform work of a permanent nature. These workers are paid miserably low wages and have no social security benefits, thus creating a situation "where two types of workers work side by side in an enterprise, doing the same job but getting highly un equal wages and benefits, thereby creating rifts among the workers."

The Supreme Court recently deprecated the unfortunate state of affairs prevailing in the field of labour relations in the country wherein employers often resorted to contract employment and thereby curtailed statutory rights of workers. The Bench expressing its anguish said : “Labour statutes were meant to protect the employees/workers because it was realized that the employers and the employees are not on an equal bargaining position. Hence, protection of employees was required so that they may not be exploited.” The Bench further observed :”Globalisation/liberalization in the name of growth cannot be at the human cost of exploitation of workers.”

The recent labour unrest at Maruti Suzuki have been over better wages and working conditions or against management’s refusal to recognize the unions that workers say are more representative of their interest. And their demands appear genuine. Till a decade ago, temporary workers made about 15 per cent of the industry’s total labour force. That proportion has now gone upto 40 per cent or so. At Maruti plant a person on contract would typically get around Rs.6000 in hand every month, which is a third of the take-home for someone on the permanent rolls. No medical or casual leave is allowed and each day’s absence costs a worker Rs.1500, while even a minute’s delay in reaching the assembly line after his tea or lunch break costs him half a day’s wage.

There are various other issues relating to working conditions at Manesar plant, which the workers have been agitating for an independent union of their own for the past few months and have formed the Maruti Suzuki Employees’ Union(MSEU) with workers of the plant as its office-bearers. The management and Haryana’s labour department have refused to recognize the MSEU and negotiate with them.

Though Maruti has taken a tough stand saying it doesn’t understand what the actual grievance is, the issue brings India Inc’s relationship with contract workers into sharp focus. The issue is sensitive and nation has already seen violent example of this, when a few workers killed manager of a plant because he allegedly replaced permanent workers with ones on contract.

The Industrial Disputes Act prevents any establishment with more than 100 employees from undertaking layoffs even in downturns without obtaining government permission(which is seldom granted). Firms, therefore, prefers to keep their regular workforce as low as possible and hire casual workers to adjust the labour requirements to the ebb and flows of business cycle. It has created obvious inequalities in the shop floor between permanent employees and those on contract.

Union Minister for Labour and Employment Mallikarjun Kharge while speaking at the second World Social Security Summit organized by the International Social Security Association in Cape Town, last year, stated that around 430 million workers are employed in the unorganized sector out of a total work force of around 450 million. The Arjun Dasgupta Committee on employment showed that the informal economy accounted for more than 80 per cent of total employment and calculated that by 2017, more than 95 per cent of the work force would find jobs in the unorganized sector, a trend almost endorsed by the finding of the Economic Census for 2005.

The trade union leaders point out that the employees in the unorganized sector, despite comprising a majority of the working class in the country, mostly remain in low-paid insecure jobs, have little access to institutionalized social security and are most vulnerable to the negative impact of economic slowdowns in terms of job loss and wage cuts.

The Contract Labour(Regulation and Abolition) Act was originally enacted to regulate the practice of contract labour to avoid exploitation of sweated labour. Section 10 of the Act empowers the government to prohibit contract labour in certain situations at the discretion of the government. Though the formal system has not changed, employers have devised several managerial strategies to achieve labour flexibility and control over work process, as also get around labour power. Trade union leaders have highlighted these ‘labour reforms by stealth’ which include reduction in the number of regular workers via voluntary retirement scheme, labour re-allocation, transfers, multi-tasking, freeze on employment, idleness pay, increased use of contract labour, outsourcing, subcontracting and even job freeze.

As a result of deliberate managerial strategies, the employment of non-regular workers, especially contract workers has increased considerably in the last decade or so. Primary surveys of industries in the organized manufacturing sector across India show that the share of contract workers in total workers in total workers in the organized manufacturing industry in India has been rising. Economically, frontline states like Andhra Pradesh, Gujarat, Tamil Nadu and Maharashtra, which increased employment, did so by increasing the share of non-regular workers.

Recent findings also suggest that some of the key industries, such as cement, iron and steel, cotton textiles and jute, rely on contract labour for as many as four out of every five workers. In the past, contract workers were used in seasonal industries like sugar, where permanent employment cannot be provided for whole year to all workers.

New sectors such as IT and the rest of the services industry give only minimum rights to employees, key states such as Punjab, Hariyana and Uttar Pradesh take as long as three years to register new trade unions in these sectors. Many state governments have allowed IT and ITeS companies to self-certify their labour law compliance, in order to encourage more investments in their state.

According to labour historian Rana Behal, there will be more new sectors opening up in the coming days, where contract labour with peripheral rights will dominate. And there will be a noticeable decline in the organized sectors’ bargaining power too.

Evidence of exploitation of workforce is indicated by the fact that according to the Annual Survey of Industries(ASI) the money wages per worker increased by less than 6 per cent between 2004-05 and 2008-09 while the rate of inflation was higher, argues Vinitha Kumar, Advisor-Labour and Employment, Ministry of Labour and Employment, New Delhi(Business Line 22.06.2011)

Pro-corporate media frequently carry articles demanding labour reforms by amending the antiquated laws to enable hire and fire approach in the context of manufacturing growth,but unbridled labour exploitation will create explosive situation like the one at Manesar.

Economic & Political Weekly (September 10, 2011) in a hard-hitting editorial observed :”The industrial belts around Delhi have been attractive to capital precisely because workers have remained largely unorganized and thus easily exploited. Every attempt at organizing workers for their rights and basic facilities has been met by police and gangster brutality….That working conditions and levels of exploitation remain unchanged is a censure not only of the state and government, but of our democracy too.”

PUBLIC HEALTH CARE AND 12TH FIVE YEAR PLAN

The National Health Policy 2002aimed at achieving an acceptable standard of health for the people, especially the poor and the under privileged. To achieve the objective, a comprehensive approach was advocated, which included improvements in individual health care, public health, sanitation, clean drinking water, access to food and knowledge of hygiene and feeding practices.

The Annual Report to the People on Health, which was published in September 2010, lists the achievements of the Indian government in the health sector. It however, calls attention to the wide variations across the country in the improvement of key human development indicators, and to the "inequities based on urban divides, gender imbalances, and caste patterns." The National Rural Health Mission(NRHM) has been described as one of the largest and most ambitious programmes to revive health care and has many achievements to its credit. The Rashtriya Swasthya Bima Yojana(RSBY), the health care scheme meant for Below Poverty Line(BPL) now being extended to the above poverty line section, provides Rs.30000/- per family to cover treatment charges. Several States have evolved their own distinctive health insurance schemes.

In spite of the laudable efforts, thousands of rural India’s poor patients have to go without even a semblance of medical care when they desperately need it. Appropriately, the Supreme Court of India, recently, directed government hospitals in Delhi to refer poor patients to private hospitals. The Court also directed the private hospitals to provide necessary treatments, free of cost, pending the preparation of a scheme that would involve private hospital in treating the poor.
Prof. K.S. Jacob, who is on the faculty of the Christian Medical College, Vellore and Member of the Mission Steering Group of the National Rural Health Mission(NRHM), in his presentation at the Dr. Chandrakant Patil Memorial Eastern India Regional Health Assembly, Kolkatta, recently, highlighted the gross inequality in health care in India, and strongly argued for universal health care as a democratic priority. The conference also stressed the bidirectional relationship between economic development and health, which justifies much greater financial input to improve the health of populations.

Despite the increase in the country’s Gross Domestic Product(GDP), its ranking in the Human Development Index(HDI), its indices for maternal and infant mortality and its rates of under-nutrition of its people tell a completely different storey. The burgeoning incomes of the wealthy increase the indices of growth; yet these averages hide much poverty, suffering, loss of livelihoods and life.

The Integrated Child Development Scheme(ICDS) a crucial centrally-sponsored scheme launched in 1975, to address maternal as well as child health and nutrition issues, has not been very effective in tackling the high rate of malnutrition in children. India has 42%, one of the highest in the world, of malnourished children in the 0—6 age group.

Though India has achieved significant gains over the last decade, it has failed to eliminate some of the "world’s most dreaded tropical diseases." A recent report in The Lancet reveals that 205000 people in India, die annually from malaria, mainly in Orissa and the surrounding States of Chattisgarh and Jharkhand, with almost one half of those deaths in children. The State of Bihar alone account for a large percentage of the world’s cases of VL, a serious parasitic infection also known as kala-azar that affects the bone marrow, liver and spleen and is associated with high mortality.

Dr.K.D. Ramaiah of the Indian Council of Medical Research in Pondicherry, has estimated that India suffers almost $ 1 billion in annual economic losses as a result of the neglected tropical diseases. Peter Hotez the author of Forgotten People, Forgotten Diseases has observed that chronic hook-worm infection occurring in over 70 million Indians stunts the growth and intellect of children to the point where a child’s future wage earning is reduced more than 40 per cent. World Health Organisation in its first-ever comprehensive report on neglected Tropical Diseases, released in October 2010, stated that the economic burden of dengue, costs India $ 30 million annually.

Diabetes, hypertension, stroke and cardio vascular diseases, all of which are disabling and life-threatening, have increased in India, silently and relatively unnoticed. Today, they constitute a growing threat to national health and national healthcare systems. As these diseases are costly in terms of long-term care, India need to reprioritise its efforts and funding, says N. Balagopal executive chairman of the Confederation of NGOs of Rural India(CNRI) . Balagopal who also represents NGOs in the Planning Commission, said rural health-care providers and nongovernment organisations working together on a common platform would be a great help in improving the health-care system of the country.

Prof. K Srinath Reddy and his colleagues note that the Indian public health system spends less than 1 per cent of GDP, and 80 per cent of the health expenditures are incurred out of pocket. They called on the government to increase spending to six per cent of GDP by 2020 and out-line actions needed to strengthen the system.

In India, high spending on health is a major reason for people sliding into poverty. The Hindu in a recent editorial said :"If the central government is sincere about building a strong health care system during the 12th Five Year Plan(2012—17), it must accept the primacy of public-funded provision, invest heavily in both preventive and curative spheres, and introduce strong regulation."

Dr. Kuruvilla FRCS, who held faculty position in Indian and foreign universities observed : "Health service in our country is in bad shape. The withdrawal of the government from the service sector has created havoc. Private enterprises and corporate bodies have grabbed this sector. The hardest hit in this game are the poor."

India has the highest number of children under five dying every year due to the shortage of over 2.60 million health workers that the country has according to a study released by the International NGO Save the Children. According to the report, India falls below the WHO health worker threshold of 2.3 health worker per 1000 people. The shortfall of health workers at present is around 2.60 million, which includes doctors at primary health centres, nurses, midwives, anganwadi workers and male multipurpose workers. The report says over 55 per cent children under the age of two do not receive basic immunisation in the country while about 2.7 million children under the age of five receive no treatment for diarrhoea, a major killer of children.

According to Ernst and Young, as of April 2010, there are only 7 beds per 10000 population in India against the world average of 39.60. It is woefully inadequate. The WHO recommend that India increase beds by 100000 every year for the next 10 years, and double the number of doctors and nurses, which are currently 700000 and 800000 respectively. A mere 3 per cent of India’s specialist physicians live in rural areas. Hence, rural areas with a population approaching 700 million, continue to be deprived of proper healthcare facilities. According to a report of the National Rural Health Mission only 10per cent of Indians have some form of health insurance.

Kerala with best public health indicators, is now facing a serious health emergency from communicable diseases. Typhoid, jaundice dengue, leptospirosis, and viral fever, had claimed several lives in different parts of the state. A two member team from National Centre for Disease Control visited the state to study the situation. Dr .B. Ekbal, public health activist and neurosurgeon called for an urgent people’s movement for the clean-up of the state. Meanwhile, the state Health Department has started a month long tour campaign across state to raise awareness about communicable diseases.
A book titled "Morbid Symptom—Health Under Capitalism" edited by Leo Panitch and Collin Leys, convey the message that mindless privatisation of the health care delivery system in various countries, which is the result of neoliberal globalisation is counter- productive to achieving a reasonable level of health.

Aman Gupta, Principal Advisor, India Health Progress, in a newspaper article explained how the "telecom model" could be profitably used to spread health insurance culture to rural areas. Innovative products and pricing strategy would help to make health insurance "really inclusive," he argued.

"Instead of depending heavily on provate health care, we need to strengthen the public health care system at the secondary and tertiairy levels as well, through higher resource allocation and better training an deducation formore health professionls," observed health economist, Dr.Sukumar Vellakkal of the Public HealthFoundation of India. Expert Group on Universal Health Coverage, headed by Dr.K.Srinath Reddy has important task for prioriitising the initatives to betaken up duringthe 12th Five Year Plan.

COM.GURUMURTHY'S CALL TO DEFEND PUBLIC SECTOR GENERAL INSURANCE COMPANIES

AIIEA Standing Committee Secretary(General Insurance) Com.Gurumurthy was the key speaker at the state level study camp organized by the Kerala State General Insurance Employees Union(KSGIEU) at CSI Retreat Center, Kottayam, recently. The topic was “Public Sector General Insurance and Two Decades of Free Market.”

In his one and a half hour presentation Com.Gurumurthy dealt with various aspects of general insurance industry in India, beginning with pre and post nationalization periods. Prior to nationalization there were 106 general insurance companies and with the amalgamation, GIC and four subsidiaries were formed, he said.

With the introduction of liberalization policies in 1991, he said, a series of measures to open up the insurance industry began. The R N Malhotra Committee constituted in 1993, in its report recommended reduction of the government stake in the insurance companies to 50 per cent, through disinvestment. He said the struggle spear-headed by the AIIEA could delay the government efforts to open up the sector, for a decade.

Com.Gurumurthy observed that with the passage of the Insurance Regulatory and Development Authority Act in 1999, India abandoned public sector exclusivity in the insurance industry in favour of market-driven competition. This shift, he said, has brought about major challenges to public sector general insurance industry. The government was giving in to the incessant demands of foreign capital. The justification for opening up the insurance sector was the lack of penetration of insurance and non-availability of new products.

Analysing growth of general insurance sector, he said, general insurance penetration has stagnated at 0.60 per cent. As for the improvement of penetration in life insurance from 1.60 per cent to 4 per cent, he felt that it was due to general buoyancy in the economy.

With the opening up of the insurance sector, Com.Gurumurthy pointed out that lots of unhealthy developments started afflicting the sector. The de-tariffing resulted in “massive under-cutting” in the fire portfolio, to the extent of about 80 per cent. The delay in revision of motor tariff and “selective underwriting” by private players also were challenges faced by the public sector general insurance companies, he said. In the post de-tariffed environment, he said, the intense competition would drive down insurance rates, a development which could ultimately impact solvency margins.

Com.Gurumurthy felt that on the regulatory side, IRDA should take a professional approach in the matter of outstanding issues concerning solvency regulations, further liberalizing of investment rules as well as the enforcement of price tariffs in the general insurance sector. In the liberalized environment, he cautioned against potentially higher incidences of unhealthy market practices.

Com.Gurumurthy expressed satisfaction at the performance of public sector general insurance companies and said New India Assurance Company’s loss of Rs.421 crores, during the last financial year, was due to technical reasons. Natural disasters have adversely impacted the performance of the company having direct offices in Japan, Australia and New Zeland. He deplored the deliberate attempt to show the public sector in bad light, in the context of the developments in the New India. He said the performance of the four companies in the competitive environment was extremely good. The solvency margin of the public sector companies was satisfactory. He said the public sector companies were financially sound, with investment value totaling Rs.1 Lakh crore.

Over the years, the public sector general insurance industry might be making underwriting losses but the companies have huge investment income by which they have been able to cover up those losses and have been able to show reasonably sound balance sheet over the years, Com.Gurumurthy said.

According to Com.Gurumurthy, as India continues to revamp its infrastructure, the flow-on effects will ensure ongoing growth of commercial insurance. He suggested drastic alteration in the process-oriented approach in the matter of claim settlement through motor third party adalalth. The public sector insurance companies have adopted upgraded insurance solutions system, but that has also created technical snags and the expected speedy delivery of products has not materialized, he said.

He stressed the need to have a proper assessment of the asset base of the public sector general insurance companies, since the balance sheets of these companies reflect only the” depreciated value of buildings situated in metros and major cities.” Moreover, as the shares of these companies are not listed in the stock exchanges, there is “considerable hidden value” for these companies as the same is not reflected in the books of accounts. Excess amounts paid to tax authorities, in some parts of the country, and now being challenged in the tax tribunal courts, would also help some companies, if the cases are favourably settled, he felt.

He said, the four public sector general insurance companies jointly set up Third Party Administrator to check excess mediclaim bills by private hospitals. This move, which is expected to help insurance companies to control both health insurance premium and claims, he observed.

Com.Gurumurthy expressed serious concern about the GIPSA management’s attitude towards new recruitment of staff in the public sector companies. He said several thousands of employees had left the industry and lack of recruitment was seriously affecting the service at the branch offices. He said the Standing Committee meeting proposed to the held in September 2011, at New Delhi, would discuss the matter for further action.

He said, the AIIEA has demanded the consolidation of the public sector through merger of the four companies and the benefits of such a move had been explained to the government and a campaign among the public was also under taken on the issue.

In the context of opposition to the LIC and the Insurance Laws (Amendment) Bill 2008, AIIEA has opposed the government move and has placed its views effectively before the Parliamentary Committee that is scrutinizing the Bill, he said.