The Insurance Regulatory and Development Authority of India (Irdai) has taken a significant step towards improving mental health coverage in insurance policies.
To address the growing need for comprehensive mental health insurance, Irdai has formed a five-member expert committee comprising medical professionals and insurers, according to a recent circular issued by the regulator. Led by Pratima Murthy, director, National Institute of Mental Health and Neurosciences (NIMHANS), the committee aims to provide guidance on existing mental health coverage and offer insights into future coverage options.
The committee will also focus on aligning the medical domain perspective with insurance-related aspects, including terminology and concepts.
ANALYSING MENTAL HEALTH COVERAGE
Recognising the importance of mental health coverage, the regulator has acknowledged the need for a thorough examination of various aspects related to mental illnesses within insurance products. The committee’s primary objective is to holistically evaluate the types of conditions and treatments from an insurance perspective.
By doing so, the regulator aims to ensure that insurance products designed to cover mental illnesses addresses all relevant aspects, thereby providing comprehensive coverage for policyholders.
Previously, in October 2022, Irdai had directed insurance companies to include coverage for mental illness in health insurance policies by the month-end. As the deadline passed without much progress, the regulator issued another directive in March 2023.
The Mental Health Act of 2017 emphasises that insurers must provide medical insurance for the treatment of mental illness on par with coverage for physical illnesses.
The Covid-19 pandemic has underscored the significance of mental health, leading to a reduction in the stigma associated with it, as more individuals are seeking professional help.
In March 2021, Irdai mandated insurance companies to promptly introduce suitable health insurance products catering to specific vulnerable sections of society, including persons with disabilities, those affected by HIV/AIDS, and individuals with mental illness.
The formation of the expert committee by the regulator highlights the growing recognition of mental health as a crucial aspect of insurance coverage.
With the guidance of medical professionals and insurers, the committee’s insights will play a pivotal role in shaping mental health coverage in India. As insurance companies adapt to these regulatory
changes, individuals and families can gain greater peace of mind knowing they have the necessary financial protection during these critical stages of life.
