Mental Health Insurance: IRDAI Asks Insurers To Cover Mental Health; Here's What You Should Know

Ever since the COVID pandemic, there has been a rise in mental health problems. People’s mental health is claimed to have suffered greatly as a result of the pandemic. At various levels, there are numerous initiatives being made to solve this issue.

The Insurance Regulatory and Development Authority (IRDAI) has instructed insurance companies to ensure that they cover mental illness under health insurance contracts by October 31, 2022.

The Mental Healthcare Act also referred to as the MHC Act, becomes effective on May 29, 2018. According to Section 21(4) of the aforementioned Act, every insurer must offer medical insurance for treating mental illness on the same lines as those provided for the treatment of physical illnesses. The Lok Sabha unanimously adopted the Mental Healthcare Act 2017 on March 27, 2017. It was approved by the Indian President in April 2017.

The Mental Healthcare Act of 2017 emphasises the need to offer mental healthcare and services for people with mental illness.

“Mental illness” is defined as as a significant disturbance of thinking, emotion, perception, orientation, or memory. It gravely impairs behaviour, judgement, the ability to identify reality, or the capacity to go on with the aspects of daily living.

What information concerning mental health insurance should individuals know?

The MHC Act of 2017’s mental insurance plan will pay for the cost of the patient’s care if they need to be hospitalised. Included in this are the cost of the check-up, the procedure, the prescription, the hotel stay, and any other expenditures.

In order to get insurance, you must first research the market. The plans’ costs and levels of health insurance coverage can change.

A health insurance calculator is a convenient tool you may utilise online to check the amount of coverage required based on your needs.

The decision by the Insurance Regulatory and Development Authority of India (IRDAI) to mandate mental health coverage by insurance companies is a significant and progressive step towards addressing the mental health needs of the population. This move not only recognises the importance of mental health in overall well-being but also reduces the stigma surrounding mental health issues.

Individuals and families can now avail themselves of insurance policies that provide coverage for mental health treatments and therapies, making it easier for those in need to access timely and effective care.* However, it’s essential for consumers to carefully review the terms and conditions of these policies, understand the extent of coverage, and make informed choices that suit their specific needs.

As society continues to prioritize mental health, this regulatory change is a positive development that aligns with the broader efforts to promote mental well-being and ensure that individuals have the support they require during challenging times. It is hoped that this initiative will encourage further conversations and actions to improve mental health services and support across India.

Standard T&C Apply

Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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