The Rise of Mental Health Coverage in India – What’s New?

Mental Health Coverage: Now a New Mandate

The real change came with the Mental Healthcare Act, 2017. This was enforced in 2018, and all insurers were requested to comply and remove mental health from their policy exclusions. This circular was once again encouraged in 2022.

The guidelines of the Act state that mental health has to be treated on par with physical concerns, especially when it comes to coverage. This led the insurers to include mental health coverage in their insurance plans.

In 2023, the IRDAI issued a circular making it mandatory to launch and offer an appropriate product and specific cover for individuals with mental concerns, HIV/AIDS or diabetes, also meaning a standalone cover.

Better Coverage with Evolving Policies

In recent years, government schemes and guidelines have encouraged insurers to expand their policy benefits and make the coverage more comprehensive.

Here is how mental health coverage is typically evolving with new policies.

Broader Coverage

With IRDAI regulations, typically, more and more policies are offering enhanced coverage for mental illnesses like anxiety, depression, bipolar disorder, and so on. However, the range of coverage may vary from one policy to another.

Hospitalisation Expenses

Health insurance plans provide hospitalisation expenses, or inpatient expenses, so you do not worry about quality care.

Digital Support

Some insurers also offer video consultations now, allowing better access to quality care with much reduced wait time.

Pro Tip: With Jio insurance broking, you get the option to check and compare different health insurance plans. This way you can compare the policy benefits, inclusions, mental health coverage, and much more. This allows you to choose a policy that best suits your requirements.

Mental Health Coverage: Increase in Demand

One of the prominent changes in recent years is the behavioural shift. Mental health coverage is now becoming a priority for individuals when choosing a health plan.

• For instance, the search for the same increased by about 41% in 2025 on a year-to-year basis.
• Further, a 30-50% increase has been seen in the mental health claims over the last 2-3 years.
• The majority of these claims are related to anxiety disorders, accounting for 30-35%.
• 50% to 55% of this mental health insurance uptake can be attributed to the tier 1 cities.
• Plus, women are 27% more likely than men to choose insurance options with mental health benefits.
• 65% of these women opt for other add-ons related to their hormonal & emotional well-being.

Mental Health Claims: The Reality Check

Despite the changes and improvements, there are areas lacking in terms of successful results

Here is some alarming data you might want to check out.

• Less than even 1% of total health insurance claims are about the treatment of mental health.
• Additionally, about 42% of individuals are either lacking or unaware of the mental health coverage in their policies.
• Typically, the majority of policies excluded coverage for injuries related to alcohol consumption, substance abuse or self-harm.

How to Choose the Right Mental Health Insurance in India?

Now that you know the importance of mental health coverage, the benefits, and recent trends, comes an important question: how to choose the right mental health insurance for yourself or your loved ones?

Well, you may consider evaluating a few factors to choose the right policy. Consider having a look.

OPD Benefits

Check if your policy covers OPD benefits like therapy, counselling, and more.

Sum Insured

Do not forget to check the sum insured and applicable caps in the fine print of your policy.

Network Hospitals

See the network of hospitals. Are they easily accessible to you, and are there other services like cashless networks?

Waiting Periods

You may also consider checking for waiting periods for your mental health concerns. For instance, the waiting period for pre-existing mental concerns.

Teleconsultations

See if your policy offers digital services, like teleconsultations, online therapy, etc.

Add-Ons

You may also check for policy add-ons to make the coverage more comprehensive and better suited to you.

Final Word

Earlier, mental health coverage was “optional". However, in recent times, it has become more of a necessity. With legal mandates starting the positive change in mental health coverage, insurers are also innovating and expanding their coverage for their customers.

With better and positive changes like this, individuals like Priya Sahani can have a more comprehensive policy, one that comes in handy in times of need.