Bridging health cover, mental healthcare in India Premium

Mental health awareness is growing, with insurance plans now covering therapy and counselling, reflecting a shift in healthcare priorities.

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.

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.

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.