Mental Health Insurance Searches Surge 41% in India, Driven by Young Adults and Women

Mumbai — Mental health insurance is gaining significant traction in India, with searches rising by 41% in 2025 compared to the previous year, according to a new survey by Policybazaar. The surge is primarily driven by young adults aged 25–35, women, and individuals in high-stress professions.

The Insurance Regulatory and Development Authority of India (IRDAI) made mental health coverage mandatory for all general and stand-alone health insurers in March 2023. Since then, the uptake has increased steadily, with Tier 1 cities accounting for 50–55% of demand due to better access to therapists, progressive work cultures, and higher disposable income.

The study, which analyzed 7,500 claims filed in FY 2025, observed a 30–50% rise in mental health-related claims over the past 2–3 years. Most claims were for mild to moderate issues such as anxiety disorders (30–35%), depression and dysthymia (25–30%), and workplace stress and burnout (20%). Conditions like insomnia and adjustment disorders made up 5–10% of claims, while severe conditions like bipolar disorder, PTSD, and OCD remained under 5%, indicating possible underreporting due to stigma or lack of diagnosis.

Mental health claims typically covered therapy sessions, psychiatric consultations, and prescribed medications, with outpatient (OPD) benefits being widely used for counseling and app-based therapies. The report noted a shift in consumer behavior post-pandemic, with mental health being treated as an essential consideration in health insurance decisions.

Triggers for first-time claims often included major life changes such as job stress, relocation, caregiving responsibilities, post-retirement challenges, and health anxiety. The 25–35 age group showed the highest engagement in mental health policies and digital therapy platforms, while women were more likely to enroll in coverage.