Palak Kothari

New member
Hello readers,

Unemployment Insurance is the need of hour seeing the pandemic condition prevailing in the current scenario. The concept was first introduced in the United Kingdom under the “National Insurance Act 1911”.Later after the Second World War, it spread in most of the European Countries for the welfare of the state. The United States of America introduced the same in 1935 where the federal government asked all individual state government to establish unemployment insurance plans. Although it is still considered as the modern concept of insurance as there are many nations around the globe which do not have such insurances.

Unemployment Insurance has some eligibility criteria and is funded out of the determined payroll taxes accumulated for the same. In case if an individual quit the job willingly or fired out of guilt or self –employed she/he will not be eligible to receive payment. It is social security for the citizens of a nation.

Another way for funding of unemployment insurance is that Employer can deduct some part from salary or from the provident fund for an employee for unemployment insurance as during financial or health crises and emergency it becomes difficult to make the payment of EMI and are forced to move out of a shelter.

Due to Covid-19, there is a sharp rise in the unemployment rate of the country along with other major economic problems which may lead India to face the worst recession. In such conditions, the low-level income group gets the help from the government but middle-level income group has to face the wrath like reduction in savings, low consumption etc.

Now, what do you think about this? What we can do to deal with financial and health crises?

Share your reviews!!
 

Himanshi Agarwal

Well-known member
Rakesh Goyal - Director, Probus Insurance an Insurtech Broking company says that currently, a stand-alone unemployment policy is provided only under Rajiv Gandhi Sharmik Kalyan Yojana (RGSKY), which is the only traditional unemployment insurance in India supported by ESIC on behalf of the Government.
 
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