Less Than 1% of All Insurance Claims are for Mental Health Illness in India

Mumbai (Times of India) – Despite regulations requiring health insurance companies to cover mental health treatment, claims for such care in India remain extremely low—accounting for less than 1% of total health insurance claims. This finding, highlighted in the Mental Health Report 2025 by Marsh McLennan India and Mpower of Aditya Birla Education Trust, raises concerns about the accessibility and awareness of mental health insurance in India.

Although the Mental Healthcare Act (MHCA), 2017 mandates equal insurance coverage for mental and physical illnesses, many policyholders remain uninformed about their benefits. The report revealed that 42% of surveyed individuals were either unaware of their mental health coverage or did not have it. Additionally, insurance companies continue to impose restrictions, with addiction treatments and rehabilitation centers excluded from most policies.

A study published in the Indian Journal of Medical Ethics further exposed systemic challenges. Analyzing insurance policies from 2020-21, researchers found that some providers explicitly excluded mental illness, violating regulatory guidelines. Many policies also denied claims related to self-harm, suicide attempts, and substance use, limiting access to critical care. Even individuals seeking treatment for physical ailments have faced claim rejections due to a history of psychiatric medication.

Despite the legal framework, mental health coverage remains difficult to access in India, often leaving patients struggling to secure financial support.