Insurance Cover for Mental Illness in India, Now Reality

The Insurance Regulatory Development Authority of India (IRDA) has issued a circular to all insurers to include mental health in their insurance scheme. Drawing reference to the Mental Healthcare Act, 2017 which has come into effect from May 2018, IRDA has asked the insurers to follow the same. As per Sec 21(4) of the said Act, every insurer shall make provision for medical insurance for treatment of mental illness on the same basis as is available for treatment of physical illness.

The IRDA has directed all insurance companies to comply with the aforesaid provisions of the Mental Healthcare Act, 2017 with immediate effect.

The insurance sector has welcomed the directive. Jyoti Punja, Chief Operating Officer and Customer Officer, Cigna TTK Health Insurance Company said, “Insurance of mental health is a progressive step in right direction. This will ensure a life of dignity to those who have mental health issues. We believe it will certainly create awareness, acceptance, and inclusion when it comes to mental illness as any other ailment, while bringing mental health disorders at par with physical illnesses will ‘normalize’ diagnoses, reducing associated myths and stigma. At Cigna TTK, we focus on the health and wellness of our customers we serve and we welcome this step to drive a robust health and well-being ecosystem.”

“Including mental health in health insurance coverage is an important and progressive step,” said Soumya Swaminathan, Deputy Director-General Programmes, WHO.

However, it is not clear how the insurance package will work for mental health as health insurance in India mostly covers hospitalisation where as mental health needs more of OPD and consultation along with long term drug treatment.