Social Insurance Programs - Essay Example

Social Insurance Programs al Affiliation) Introduction The government of a country creates social programs to safeguardtheir citizens from economic risk and other risks in life. The programs are important because they help in the reduction of poverty and increase opportunities for vulnerable citizens in the country. The Federal Worker’s Compensation Insurance protects individuals against the citizens who are injured in their work (Thomason Burton & Schmidle, 2001). The program provides benefits for individuals who are employed by various companies.

It allows most employers to provide safe working conditions for their employees. Federal Workers Compensation Insurance program is a program designed to ensure that injured or physically challenged individuals who work for the government. The program applies to all the workers who get injuries in the creation of their duties. The government employs the program because it involves provides security to their employees. It puts measures to measures that protect citizens from being exploited by employers.

Federal workers receive benefits through the Federal Employees Compensation Act. In the United States of America, the government allows the administration of the Act through the Department of Labor (Moore, 2008). The government established the system to help them provide benefits to their employees in the case of the injuries. The government provides insurance to help their workers with the process of recovery. It allows the workers to save time and return to work as soon as they recover. The strategy helps the government economically, and it gives a chance to indemnify their workers.

In the private sector, the program would cause a reduction in the profits. The federal gets funds to sustain the program through taxation process. The idea would lead to disputes and fraud among the private sector. The paternalistic reason for the involvement of the government in the program is to provide enforcement of the policy. The Federal government pays the compensation to enforce the rule in the private sector that employers have to pay compensation for their employees who get injuries in the line of duty.

The government participates in the program to be a leader in the delivery of the compensation program and distribution of the information in the economy. Compensation bargain, disputes, and fraud are the major behaviors that the government singles out in the private sector. Disputes and fraud reduce the effectiveness of the program from achieving its main goals. Disputes arise in the private sector when the cost of the compensations is high. Companies in the private sector go to the court, and it slows down the process of recovery of the workers.

In relation to disputes, fraud is a behavior that the government of United States of America singles out (Moore, 2008). It allows individuals in the private sector to make an adjustment in their financial to avoid paying the compensation. The behaviors do not enhance the process and rehabilitation of employees. The moral implication of the program is that it provides workers with morale that in the case of injury the government will not abandon them. The program indemnifies the victim for the lost time during their injuries and covers the medical expenses.

The program can reduce social efficiency by distributing resources to a certain sector of the economy. In the case that most of the individuals claim compensation from the government there would be no optimal distribution of resources. References Moore, C. D. (2008). Understanding workers compensation insurance. Clifton Park, NY: Delmar, Cengage Learning. Thomason, T., Burton, J. F., & Schmidle, T. P. (2001). Workers compensation: Benefits, costs, and safety under alternative insurance arrangements.

Kalamazoo, Mich: W.E. Upjohn Inst. for Employment Research.