“Happiness can be found even in the darkest of times, if one only remembers to turn on the light.” – Albus Dumbledore
The Insurance Regulatory and Development Authority (IRDAI) has recently passed a circular to the insurance companies to cover mental health under health insurance policies. The notice directs the companies to treat mental illnesses under the provisions of the Mental Healthcare Act, of 2017. Prior to this, only a few companies included mental illness as an additional benefit.
Mental health has always been a topic swept under the carpet. Since the pandemic struck, conversations around mental health have become more necessary. Addressing mental illness and taking various measures to normalise it is a tremendous step for India. Keeping its importance in mind, the Mental Healthcare Act was enacted.
The Mental Healthcare Act, 2017 or MHC Act, came into force on May 29, 2018. Section 21(4) of the MHC Act provides a provision for every insurer to seek the same medical treatment for a mental illness as a physical illness. Lok Sabha passed the MHC Act on March 27, 2017, which the Indian President later approved in April 2017. The Act defines mental illness as a significant disorder of mood, thinking, orientation, perception, or memory that gravely impairs behaviour, judgement, the ability to identify reality, or the capacity to meet the necessities of daily life. It also includes mental illnesses linked to drug and alcohol abuse.
The IRDAI’s regulation sheds light on this sensitive stigma. This initiative acts as a beneficial platform for everyone with coverage of mental illness and the accessibility of therapy. It is encouraging to see government officials shatter taboos by treating mental and physical health equally. We are now witnessing the remaining 70% of insurers beginning to cover mental health as well, since the IRDAI has instructed insurance companies to give coverage for mental issues under health insurance policies before October 31, 2022.
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Following the guidelines of the MHC Act 2017, the cost incurred on the treatment during hospitalisation will be covered under the mental insurance plan. The costs covered under the Act differ from company to company but generally include treatment, medicines, diagnostics, hotel rent, etc. Therefore, it is highly advised to do thorough research on the plan’s price and the coverage it provides before purchasing the insurance. It must be noted that the Act has no inclusion of intellectual disability or mental retardation.
There are certain things that an insurer must know when applying for insurance coverage. The patient must be hospitalised for at least 24 hours to claim the benefits provided by health insurance. Bipolar disorder, acute depression, anxiety disorder, OCD, PTSD, ADHD, mood disorder, schizophrenia, and psychotic disorder are a few diseases covered under the insurance policy. Most insurers have a two-year waiting period, which implies that after purchasing insurance, one must wait for that long before making a claim for expenditures related to a mental condition.
Finally, the IRDAI’s action is a fantastic step towards a more inclusive world that ensures everyone is taken care of.
