IRDAI’s Mandate: Mental illness coverage in health insurance

Gone are the days when life was happy and simple. The vicious cycle of suffocating work-life coupled with a chaotic personal life has become a reality for many persons these days. This leads to massive stress, anxiety, depression as well as other mental illness issues. The COVID 19 pandemic also impacted citizens’ mental health in a big way. To keep pace and ensure people’s emotional wellbeing, the Insurance Regulatory and Development Authority of India (IRDAI) has instructed all health insurance companies to include coverage for mental illness in their policies mandatorily from 31 October 2022. The policies had put in place in 2017, but a large segment of the health insurance sector didn’t adhere to them till now. 

The grim picture

Mental health issues in India have long been ignored. Only in recent years, the awareness has grown, and people have started realising the need for addressing mental illness and that they require treatment like any other ailments. With the pandemic taking a toll on both the body and the mind, there was a sudden steep rise in mental health issues worldwide. India was no exception either and a report by WHO (World Health Organisation) in October 2020 clearly stated that almost 7.5% of the Indian population was suffering from mental disorders. Another survey showed, nearly 1 out of 20 people in India has mental health issues. Awareness and treatment of mental illnesses have consequently gained momentum in India. To achieve this, insurance coverage for mental illness has become a crucial instrument that can urge people to take care of their mental health and get treated without hassles whenever necessary. 

The first steps by IRDAI

The Indian Government also took cognisance of the changing times, and with the Mental Health Act, 2017 enacted on 29 May 2018, IRDAI mandated making provisions for mental illness coverage in all health insurance just like in the case of any other physical ailment. This meant bringing the treatment of mental illness, psychological disorders, stress and neural diseases under the purview of health insurance. However, the IRDAI mandate remained a far cry with compliance to the new norms not ensured by many insurance providers.

The calamities of COVID and thereafter

When the pandemic broke out, IRDAI stepped in again and directed all insurers to start offering coverage for mental illness treatment by October 2020. Despite that, there was a delay in execution and the date eventually shifted to 31 October 2022.

The current scenario

As per the Mental Health Act, 2017, health insurance now offers coverage for mental illness treatment considering it at par with physical health issues. However, under the current scenario in India, mental health-related issues are still not as openly discussed, and the lack of awareness among common people leads to delayed treatment. 

The points to be noted 

Persons affected with Mental illness 

To evaluate the risk associated with person affected with Mental Illness, Bajaj Allianz General Insurance will consider the below points: -

a. The Under Writer decision would be basis on the diagnosis, present status of the condition, treatment details & complications.

b. Basis on these parameters & the supporting documents for the same cases would be reviewed

The above details may change as per underwriting guidelines of Bajaj Allianz General Insurance company.

Why do I need to buy mental illness coverage

With our lives getting more complicated with every passing day, people are more vulnerable and prone to mental health disorders. So, it will be helpful to get yourself covered for the treatment of the same by incorporating a renew Mediclaim policy. Purchasing mental illness coverage offers financial protection in case of health insurance emergency, improved access to care, and a range of treatment options for mental health conditions as per the policy terms and conditions. It helps ensure that you receive the support you need while reducing the financial burden associated with mental health treatment.

Last but not the least

Staying mentally healthy is as important as being physically healthy and fit. With more and more people falling victim to psychological disorders, stress, and other mental illnesses, it’s increasingly becoming important to get opt for mental health insurance coverage. Just remember to check the coverage details and the coverage period as well as the other technicalities before you take your pick. 

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