Most Indian employees seek self-harm coverage in health insurance plans

In India, 43 per cent of organisations reported that their group medical insurance plans do not include any mental health benefits, a report stated

The death of a 26-year-old Indian employee from consultancy firm EY has triggered significant discussions around attention to mental health at workplaces. The incident came to light last month after the victim’s mother wrote a letter to EY India head Rajiv Memani which went viral on social media.

Memani dismissed the parents’ claim that the victim’s death could be attributed to work-related stress. Since then, many employees of the Indian formal workforce have shared their own experiences related to work pressure and unhealthy environments at work. A recent report on the issue, published by Mercer Marsh Benefits, also pointed out a significant gap in mental health support at Indian workplaces, as reported by employees.

The report titled ‘RiseUP for a better tomorrow’, surveyed employees across 150 organisations operating in India. It showed that 83 per cent believe that “insurance companies should not exclude self-inflicted injury and suicide attempts as reasons to deny claims for mental health treatment.”

At present, self-harm, attempted suicide and suicide are listed as exclusions in almost all health insurance policies in India.

Highlights from the report:

1) About 43 per cent of organisations in India do not offer mental health benefits in their group medical insurance plans, and 63 per cent of employees are dissatisfied with the current mental health coverage available.

2) Key challenges in integrating mental health support into employee health insurance plans include stigma and fear of workplace discrimination. Lack of clarity about services and coverage costs also hinders implementation

3) About 87 per cent of employees surveyed said that they worked while feeling mentally unwell. One in two Indian employees feel stressed in everyday life, the report added. When asked about their group medical insurance portfolio, 83 per cent reported that their overall claims utilisation for mental health-related issues is below 1 per cent.

4) About 78 per cent believe that insurance companies should not use substance use as a justification to deny claims for mental health treatment.

5) The report also said that India lacks adequate mental health infrastructure. For instance, the ratio of psychiatrists to people in India is 0.75 per 100,000, significantly lower than the global average of 3 per 100,000, it said.

On these findings, Sanjay Kedia, CEO, Marsh McLennan said that: “...Mental health awareness is no longer enough; we must equip organisations with robust insurance offerings that address mental health comprehensively from early intervention and prevention to rehabilitation and crisis management. A well-rounded insurance plan not only helps manage business risks but also enhances employee well-being, making it a key differentiator in today’s competitive landscape.”