Bridging health cover, mental healthcare in India

The Hindu

a day ago

Mental health is finally getting the attention it has long deserved. The post-pandemic world has not only shifted how people think about well-being, but sparked a deeper sense of urgency around mental health, and how to plan for it.
Globally, mental health conditions affect about one in five adults, with the World Health Organization estimating an annual productivity loss of over $1 trillion due to untreated mental health issues. In India, the conversation is gaining momentum and it's being reflected in both policy and consumer behaviour.
Until a few years ago, health insurance was largely seen as a safeguard against physical illness or hospitalisation. That has changed. Following the Mental Healthcare Act, 2017 and IRDAI directive, mental health is now covered at par with physical illnesses across health insurance plans in India. This is not just a regulatory milestone — it signals a much-needed shift in how we define health.
Changing landscape
More importantly, this coverage is becoming more holistic. Today, most retail health insurance plans offer outpatient (OPD) benefits, either built-in or as optional add-ons. These allow for therapy, counselling, and psychiatric consultations — services central to mental healthcare but rarely require hospitalisation. Data tells us that people are using them.
Our data shows over the past 2-3 years, mental health–related claims — including for therapy, stress counselling and anxiety medication — have risen by 30–50%. It reflects not just policy evolution but fundamental behavioural shift. More people are seeking professional help and using insurance to pay for it.
Younger Indians lead
Interestingly, the demand is being led by younger Indians. Those between 25-35 years are driving the highest search interest, policy uptake and mental health claims. This group, juggling career pressures, financial uncertainties and the demands of an always-on digital lifestyle, is showing greater openness to emotional support, particularly through app-based therapy and online mental health platforms.
A closer look at the claims data shows anxiety disorders account for about 30–35% of mental health claims, followed by depression (25–30%), workplace stress and insomnia. Most of these are early to moderate cases, which signals another crucial trend: a growing comfort with seeking care before reaching crisis point.
This is how real change begins — with early intervention.
For women
Women are significantly more likely to opt for policies that include mental health benefits — especially those aligned with life-stage transitions such as pregnancy, menopause or caregiving responsibilities. Emotional well-being during these phases is often under-acknowledged but deeply impactful. The rise in claims from women reflects broader cultural shift toward prioritising self-care often for the first time.
Geographically, mental health insurance adoption is still concentrated in Tier 1 cities, accounting for more than 50% of the total uptake. These metros typically have better access to therapy networks, more progressive workplace policies and higher levels of digital literacy. That said, growing interest from Tier 2 cities points to a promising national trend — one where awareness is no longer limited to urban pockets. Workplaces, too, are undergoing a transformation. Whether through wellness programmes, access to therapists, or stress management workshops, mental health is beginning to find a place in the benefits conversation.
No longer afterthought
The best part of this conversation is mental health is no longer an afterthought. People are researching, asking and making insurance decisions with it in mind. But there's still a long way to go. Coverage is now widespread, but utilisation and awareness need to catch up. Many still don't know their plans include OPD therapy or cashless mental health services are an option.
This is where the focus must lie — in building a system that is not only inclusive on paper but accessible in practice. The foundation is in place: regulation, product innovation and early adoption. What's needed next is education, empathy and a continued effort to normalise mental health as part of everyday healthcare planning. The message is simple: taking care of your mind is just as important as taking care of your body.
And today, with the right insurance plan, you can do both, affordably and confidently.
(The writer is head, health insurance, Policybazaar)