The Mental Healthcare Act (MHC Act) of 2017 states that every insurer needs to provide insurance for the treatment of mental illnesses. However, many private health insurers are yet to incorporate the provisions into their offerings.
In a recent move this year, the Insurance Regulatory and Development Authority of India (IRDAI) made it mandatory for all health insurance providers to comply with the MHC Act and provide coverage for mental illnesses in their policies by 31 Oct 2022.
The circular released by IRDAI specifies that all insurance products released on or after the date of the MHC Act 2017 shall be deemed to provide cover for mental illnesses. This means all insurers will have to give equal consideration to mental and physical illnesses, covering hospitalization and therapy expenses.
Mental health issues like depression, dementia, bipolar disorder, and others will need to be covered under standard health insurance policies with two exceptions:
- If it is mentioned as an exception in the insurer’s policy
- If it doesn’t fit the definition of mental illness as stated by MHC Act, 2017
Under the current guidelines, policy coverage may not extend to substance abuse and intellectual disabilities.
