Insurance For Mental Health: Is It Covered?


Mental illness has faced societal stigma and is often neglected in discussions compared to physical health. The Mental Healthcare Act 2017, implemented in 2018, was pivotal in addressing this issue. It significantly expanded individual health insurance coverage to include mental illnesses, marking a positive step toward recognizing and supporting mental health in India.

  Traditionally taboo, the perception of mental health has evolved positively in recent years. This change is reflected in the mediclaim industry, where health plans now incorporate coverage for mental health treatment.

The Mental Healthcare Act of 2017 mandates health insurance coverage for mental illnesses. The Insurance Regulatory and Development Authority of India (IRDAI) has directed mediclaim providers to include mental health coverage in their policies. #

The Mental Healthcare Act of 2017 defines mental illness as a significant disorder impacting mood, perception, thinking, memory, or orientation, affecting daily functioning. Mental retardation, attributed to arrested or incomplete brain development, is not covered by the Act. Mental illness insurance aims to financially support the treatment of covered conditions, alleviating the burden on individuals with mental health issues. In the realm of mental health insurance, it’s crucial to explore the available options, keeping in mind potential benefits like the 80D deduction, which can provide financial relief for those seeking comprehensive coverage. **

Read more about – Is proof required for 80D?

The following are the advantages of health insurance for medical conditions.

Required By Law

The Mental Health Act of 2017 mandates that mental disorders must be covered by health insurance, which is one of the main advantages of having health insurance for them. Insurers must cover people with mental illness diagnoses. The policy includes provisions to provide coverage for individuals with mental health disorders.

Encompasses A Wide Variety Of Mental Diseases

Family health insurance policies for mental disorders provide financial coverage for various conditions like schizophrenia, bipolar disorder, anxiety disorder, dementia, and Alzheimer’s disease. These illnesses impact daily activities and brain function. The comprehensive coverage offers essential financial security for individuals seeking medical care to improve their mental health. *

Greater Coverage

Most plans are made to provide both outpatient and inpatient care in addition to a respectable sum insured. The plan includes coverage for tests, diagnosis, treatment and recovery, and pre-and post-hospitalization costs. Specific plans provide coverage for mental health disorders, memory problems, perception issues, and impaired decision-making skills. *

  • Bipolar disorder
  • Acute depression
  • Anxiety disorders
  • Schizophrenia
  • Obsessive-compulsive disorder
  • Mood disorders
  • Hyperactivity/attention deficit disorder
  • Post-traumatic stress disorder
  • Psychological disorders

Coverage Exclusions For Mental Illness

The following are the exclusions from the coverage of mental illness.

  • Mental retardation of any kind.
  • Mental illness brought on by abusing drugs or alcohol.
  • Most insurance only pays for medical costs incurred while a patient is admitted to the network hospital.
  • History of recurrent mental illness.

* Standard T&C Apply

** Tax benefits are subject to change in prevalent tax laws.

# 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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