Mental health insurance in India: How to choose the best one?

Changes take time – they take conversations and persistence. The journey of change for the mental health scenario in India was moving at a snail’s pace until 2020 when Covid-led lockdown started having a harmful impact on people’s mental health. One of the principal measures taken during lockdowns was the closure of schools, educational institutes, and the implementation of work from home. These inexorable circumstances which are beyond normal experiences lead to stress, anxiety and a feeling of helplessness in general.

The year 2017 had been remarkable in that it had seen the Mental Health Care Act being introduced. This Act was to provide for mental healthcare and services for persons with mental illness and to protect, promote and fulfil the rights of such persons during the delivery of mental healthcare and services, and for matters connected therewith. However, the importance of cover for mental health treatment in health insurance gained significant attention only during and after the Covid-19 pandemic-led lockdowns.

“An alarming number of people struggle with some form of behavioural health problem, and India has the prevalence of one of the highest numbers of mental illnesses globally. According to a World Health Organization (WHO) report, India has the highest number of depressed individual in the world: One out of every three individual in India suffers from depression/anxiety or some other kind of mental issue. Projections show that India Inc will suffer massive economic losses due to the rise in mental health conditions and the consequent absenteeism could bring down productivity at alarming levels,” said Amjad Khan, director of employee benefit practice & international business at Anand Rathi Insurance Brokers.

He added that mental health problems caught everyone’s eye during the pandemic, in addition to the physical well-being. We witnessed a big push by the government of India, which through its Ayushman Bharat, is offering health insurance of up to Rs 5 lakh, with mental health coverage within its larger scope. Besides, the insurance sector regulator, Insurance Regulatory and Development Authority of India (Irdai) also joined the government in making mental healthcare available to all by directing health insurance providers to cover mental illnesses under the scope of health insurance.

Khan said: “Currently, a mental health insurance policy might offer limited coverage and is an add-on benefit under a health plan. However, going further, with the development in the mental healthcare infrastructure, the insurance companies will make the cover more extensive and standalone.”

“Mental health insurance would cover expenses incurred if anyone has to be hospitalised under in-patient care due to any mental illness, including diagnostics, medications, treatment costs, room rent road ambulance charges, etc. Consulting and counselling cost can also be covered if there is an OPD extension availed of under the mental health insurance. The pandemic has brought about a renewed approach to mental well-being and insurers are offering flexible solutions under the same in view of growing need to have mental well-being as an essential part of the overall health insurance coverage,” said Amjad Khan.