Historical Overview of the National Insurance Scheme Grenada
The National Insurance of Grenada, Carriacou and Pettit Martinique came
into force on the 4th of April 1983 by N.I.S Law 14|1983. National
Insurance is equivalent to what is referred to in other countries as
"Social Security". It is the protection which society provides for its
members through a series of public measures against economic and social
distress that would be caused by the stoppage or substantial reduction
of earnings resulting from occurrences such as sickness, invalidity,
childbirth, aging or death.
The law provides for the collection of contributions and payment of
benefits to insured persons. Benefits paid are Sickness, Maternity,
Funeral, Age, Invalidity, Survivors and Employment Injury. Copies of the
law are available through the N.I.S. or the Government of Grenada
Statistical Department.
Social Security was started in the Caribbean as early as 1966 when the
Jamaica National Insurance was established. Efforts at establishing a
Social Security program for Grenada were first started in the 1960”s
when workers suffered extreme financial hardships when they were no
longer able to work.
In 1970, the first Social Security package was introduced to Grenada
with the proclamation of the Agricultural Workers Provident Fund.
Employers were required to contribute fifteen (15) cents to the fund on
behalf of each worker for every day worked. Money generated through this
fund were used to pay benefits to persons covered by the fund, who were
primarily agricultural workers.
In the years following its establishment it was realized that the scope
of coverage provided by the fund was limited and inadequate. As a
result, the International Labour Organisation was contracted as part of
a Caribbean-wide project to look into the establishment of a more
comprehensive Social Security Program.
This resulted in the setting up of National Insurance Schemes in several
countries including Grenada. The Act which brought this into force
provides for an actuarial review every three years, mainly for a review
and improvements of benefits paid.
There have been a number of changes since 1983 in this regard. For
example in 1998 actuarial recommendations were implemented which saw the
increase of short-term benefits from 60% to 65%, increases in pensions
and the introduction of two new benefits; Employment Injury and Reduced
Age Pension.
It is important to note that National Insurance or Social Security
Programs are present in almost every country of the world. Wherever they
exist they are compulsory, that is, every working person within a
stipulated age must contribute to the program.