By Ankur Nijhawan
The COVID-19 pandemic-induced lockdown saw an unparalleled increase in mental illnesses, for both India and the world, at large. In fact, the World Health Organisation states that in India alone, the economic loss caused due to mental health conditions (in the years 2012-2030) is estimated at a whopping $1.03 trillion. India already has a five-year old law in place that has made the inclusion of mental-health illness in insurance compulsory. Having said that, there is a fresh nudge from the Insurance Regulatory and Development Authority (IRDAI) which stresses on the fact that insurers will have to include mental health insurance coverage as a part of insurance policies. The latest circular from India’s insurance regulator further states that all insurers should comply with the provisions of the Mental Healthcare Act. This act, which was passed in 2017, states that all individuals who suffer from mental illnesses should have access to the right health services that will protect and fulfill their healthcare needs.
Why Mental Health Insurance Is Important?
The inclusion of mental health insurance as a part of the regular insurance plan is a fairly novel concept in India. To say that this new development is a much needed one is an understatement. In recent years, we have seen a rise in awareness of mental health. Thus, a step in this direction will put India in a better place, not just physically, but mentally, as well. Mental health insurance is important because with a good mental health insurance plan in place, in-patient hospitalisation expenses such as the costs for medication, ambulance charges, diagnosis, and overall treatment, will be covered. In some cases, insurers also cover OPD expenses such as rehabilitation, counseling, and consultations. Ideally, mental health insurance should cover mental disorders such as anxiety, schizophrenia, mood disorders, acute depression and psychotic disorders. In addition to this, some insurers also cover mental ailments that can affect memory, behavior, and decision-making, as well as issues that hinder cognitive abilities.
What Are the Exceptions?
Just as in the case of your regular medical health insurance, mental health insurance, too, has a few limitations within their policies. Settlement claims will be rejected if the mental health illness is an outcome of alcohol or drug abuse. As of now, mental retardation too is excluded under mental health insurance. This would include people who have an IQ that is below 75, as well as those who have limitations when it comes to adaptive skills such as self-care, social skills, work, and communication. In some cases, insurers may not include outpatient charges as a part of their policies. People who are suffering from recurring mental illnesses may also get rejected, in some cases.
There are several causal factors that are responsible for India’s rise in mental health issues such as genetics, a stressful lifestyle, poverty, unemployment, disease, and environmental issues. With this being the case, access to mental health care is the need of the hour. It is imperative that people have good mental and physical health cover, so that, in the face of unforeseen events, they are better equipped to handle it, without any financial burden. People who have a family history of mental illnesses in particular need to avail a good mental health insurance policy, as well as, those who have been at the receiving end of traumatic experiences. Examples of traumatic experiences include accidents, domestic abuse, and loss of a loved one, to name a few. Getting a good understanding of what is covered within a good health insurance plan can be the first step to enjoying the benefits that insurers offer.
With Ankur NijhaChief Executive Officer, AXA France Vie – India Reinsurance Branch
(DISCLAIMER: The views expressed are sole of the author and ETHealthworld does not necessarily subscribe to it. ETHealthworld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
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