AXA set to launch mental health insurance in Indian group policies

The first-ever standalone product in this space will provide Rs 25,000 for virtual consultations with therapists, psychologists and life coaches, and up to Rs 1 lakh for hospitalisation

AXA France India, with its Indian insurance partners, is set to launch India’s first-ever mental health insurance cover in its group policies, said a person aware of the development.

The mental health insurance would provide Rs 25,000 for consultation with therapists, psychologists, life coaches, among others through virtual mode, and up to Rs 1 lakh for hospitalisation. 

The cover would also provide free mental health assessment tests as recommended by the World Health Organisation (WHO).

This comes amid rising awareness about mental health in India and the number of cases increasing post the Covid-19 pandemic. As per the WHO, in the first year of Covid-19 pandemic, global prevalence of anxiety and depression increased by 25 per cent. This is because of the stress caused by the social isolation, loneliness, fear of infection, suffering and death for oneself and for loved ones, grief after bereavement and financial worries. Among health workers, exhaustion has been a major trigger for suicidal thinking, according to WHO.

The policy by Axa would provide coverage for consultation, therapy medicines and hospitalisation and is expected to be made available from July 1, said the person quoted above.

This would be a first of a kind policy focusing on mental health, said Rajesh Dalmia, partner at EY India. The demand for such a product would pick up slowly with rising awareness on mental health issues, Dalmia said.

Such a policy can be made compulsory for employer-employee groups and a limited exposure would make it more feasible and adequately priced, he said. It would also help in curbing the possibility of fraud due to unclear definition of mental health, Dalmia added.

Last week, AXA, along with Manas Foundation launched a fully funded, free-of-cost 24*7 mental health helpline that will provide free mental health support and consultations from counsellors and psychologists.

The recently released National Family Health Survey (NFHS) showed that 0.1 percent of urban households and 0.2 percent of rural households have mental disability.

However, it is estimated that around 99 percent of retail insurance policies do not cover mental health as an illness cover.

Experts like Prathap C Reddy, founder and chairman of Apollo Hospitals have pointed out that non communicable diseases (NCDS) are the biggest threat to the world. According to reports, NCDs including heart disease, cancer, diabetes, infections, obesity and mental illness may lead to 80 per cent of deaths by the end of 2030.

Around 100 mn Indians suffer from mental health issues or anxiety disorders, according to the World Health Organisation (WHO). Each year around 200,000 people in India take their own lives.

The Lancet Study “State-wise burden of mental health” has said that around 14 percent Indians suffer from variations of mental health disorders.

Clinicians welcomed having mental health coverage in health insurance policies.

“Insurance for Mental Health is an absolute must and its time was long coming - for ensuring mental health for all, it’s so important that all stakeholders play their part and in this the insurance providers have a very important role to play. We must work on awareness, access, affordability and ensure that digital outreach via tele mental health bridges the gaps in mental health care of the society,” said Dr Samir Parikh, director, Mental Health and Behavioural Sciences, Fortis Healthcare.