like snake bite, fall from tree etc, the cause should be supported by immediate hospital
record.
Q.23. If the insured is missing and death is not confirmed, will the legal heirs
get benefit of insurance?
PMSBY covers deaths due to accident as confirmed by documentary evidence only.
Q.24. What benefit will be payable if a person suffers partial disability without
irrecoverable loss of sight of one eye or loss of use of one hand or foot?
No benefit will be payable.
Q.25. Can an account holder get claim from more than one bank where he has
enrolled and premium has been debited?
No. The insured/ nominee shall be eligible for one claim only.
Q.26. Are PMSBY policies being introduced and serviced in association with
foreign insurance Companies?
There are no foreign insurance Companies directly operating in India. As permitted by
the Insurance Act and IRDA Regulations there are some foreign Companies in joint
ventures with Indian companies, where the stake of foreign insurers is restricted to
74% only.
Q.27. Will the PMSBY scheme which is being promoted aggressively and sold
in large numbers accrue huge profits to the foreign insurance Companies who
in joint venture with Indian entities have floated general insurance companies
and are operating this insurance cover?
Only Indian Insurance Companies as defined in the Insurance Act can operate in India.
The policy holders’ funds of all such insurance companies operating in India including
those with foreign partners within the 74% cap are to be invested in India as per
regulations and cannot be invested abroad. The premium charged for PMSBY has been
worked out based on actuarial calculations by considering all risk factors, current
mortality rates and adverse selection. Thus, there is no scope for any huge profits
accruing from the scheme.
Q.28. Why are foreign insurance Companies associated with PMSBY when
Public Sector General Insurance Companies (PSGICs) which are government
owned companies could have managed this scheme launched by the
government?
There are 21 general insurance companies operating in India, who are licensed by
IRDAI to carry on general insurance business in India. To promote competition and
better pricing and service to customers, all these companies are permitted to participate.