The Buyt Desk
The Insurance Regulatory and Development Authority has directed insurance companies to mandatorily provide coverage for mental illness under the health insurance plan. From 1st November 2022, all health insurance policies will mandatorily cover mental illnesses. This move will help remove the stigma around mental health and positively influence the help-seeking behavior of the patient. Henceforth, all insurance products will have to cover mental health at par with other medical conditions.
It has been almost five-year since a law mandating the inclusion of mental health-related illnesses in insurance policies was passed. But, less than half of the insurers have incorporated this. Now this fresh push by the insurance regulator has encouraged even private insurers to ensure compliance by October 31, 2022. In a circular issued on 18 October 2022, the Insurance Regulatory and Development Authority IRDAI said – “All insurance products shall cover mental illness and comply with the provisions of the MHC Act, 2017 without any deviation. Insurers are requested to confirm compliance before 31 October 2022”
According to the Mental Healthcare Act, of 2017, every insurer must cover the treatment of mental illness just like the treatment of physical illness is covered. And in August 2018, IRDAI asked all insurance companies to comply with the act with immediate effect. It has also mandated that insurers do not discriminate between mental and physical ailments. While public sector undertaking health insurance providers had offered cashless hospitalization for mental ailments, many private health insurance providers did not have the offering. But some private insurance providers made this provision at the insured’s request.
What is mental health insurance?
The Mental Health Act, of 2017, defines mental illness as “a substantial disorder of thinking, mood, perception, orientation or memory that grossly impairs judgment, behavior, capacity to recognize reality or ability to meet the ordinary demands of life, mental conditions associated with the abuse of alcohol and drugs.” This act lays the foundation for health insurance for psychological disorders. Now, medical insurance will cover treatment that falls under the domain of this definition of mental illness.
What are the diseases covered under mental illness cover?
Below are a few of the conditions that are covered under the mental illness cover –
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Bipolar disorder
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Acute depression
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Schizophrenia
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Obsessive-compulsive disorder
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Anxiety disorders
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Hyperactivity/attention deficit disorder
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Mood disorders
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Post-traumatic stress disorder
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Psychological disorders
What are exclusions under mental illness coverage?
Mental health insurance also has some exclusions like any other health insurance plan. Exclusions are health conditions or situations that the policy doesn’t cover. It is better to know the exclusions of mental illness coverage so that rejections of claims can be avoided. As per the mental illness definition in the Mental Health Act, of 2017, mental retardation is not included in its definition. Mental retardation is defined as a condition of arrested or incomplete development of the mind of a person, especially characterized by sub-normality of intelligence.
Following are the exclusions under the mental illness cover –
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Any type of mental retardation
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Mental illness caused by drug or alcohol abuse
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Medical expenses only on hospitalization are covered
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History of recurring mental illness
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Treatments related to intentional self-inflicted Injury or attempted suicide
Why should you know about mental health insurance?
Mental health is very crucial for an individual to perform everyday activities without much help. Nowadays, there has been a considerable increase in mental health issues. This is mainly due to a sedentary lifestyle, social media, stress, no work-life balance, etc. Then the Covid-19 pandemic has made a lasting impact on the mental health of several people. You should know the importance of mental health insurance so that you can receive the proper medical care. Now that it is mandatory coverage in health insurance, it covers a wide range of mental illnesses.
Summing up
Good mental health is a blessing in the current world. You will be able to do your best only with good mental health. It helps you perform your everyday activities without much help. People are not aware of the severity of mental illnesses. The impact is immense while the treatment can be expensive. Not everybody in India can afford the medical expenses of mental health. To minimize your financial burden that may arise in the future due to expenses of mental health treatment, buy health insurance that covers a wide range of mental and physical illnesses.
