Updated on 31 Oct 2025
"Health is wealth" is something we hear a lot. For many years, however, many believed it just referred to being physically fit. The reality is that our mental well-being is just as important. Life nowadays is full of stress, pressure and emotional ups and downs. Mental health problems can happen to anyone, whether they are experiencing stress at the workplace or facing issues in their personal life.
Depression, anxiety, bipolar disorder and other mental health issues are becoming more common than we imagine. These conditions usually require therapy, medication or even hospitalisation to treat them. This may cost a lot. This is where a health insurance plan that includes coverage of mental illness comes into play. It helps the policyholder get access to the right care at the right time without worrying about the finances.
Mental health & the need for insurance coverage
Mental health insurance has improved over the recent past. Things started to improve after the Mental Healthcare Act, 2017, became a law in India. It encouraged insurance providers to give equal treatment coverage to mental and physical ailments. This was a turning point because it recognised that mental health problems are medical conditions that need to be treated rather than personal defects.
Nowadays, a large number of insurance companies have come up with policies or incorporated benefits that include psychiatric treatment, therapy and hospitalisations for mental conditions. This is significant not just for those already diagnosed but for those who might require it in the future.
What mental illnesses are covered by health insurance?
Most policies today cover the following mental health conditions:
- Depression and anxiety disorders, including general anxiety, panic attacks and phobias.
- Bipolar disorder where a person is characterised by extreme mood changes.
- Obsessive-Compulsive Disorder (OCD) that involves repeated unwanted thoughts or actions.
- Schizophrenia and other psychotic disorders that affect thinking and perception.
- Post-Traumatic Stress Disorder (PTSD), often caused by distressing life events.
The list may be slightly different with every insurer, so it's always a good idea to go through your policy document well. A few companies even provide coverage for counselling sessions and rehabilitation courses, based on the plan you opt for.
Inclusions and exclusions in mental health coverage
Each health insurance plan has inclusions (what is covered) and exclusions (what is not covered). Understanding these will prevent you from being surprised later.
Common inclusions in mental illness cover include:
- Hospitalisation costs due to a mental illness.
- Doctor consultations during hospital stay.
- Cost of prescribed medicines.
- Diagnostic tests required for treatment.
Common exclusions may include:
- Treatment without hospitalisation (in some basic plans).
- Self-harm or injuries caused intentionally.
- Treatments that a licensed medical practitioner does not advise.
- Any condition related to drug or alcohol misuse.
Consider purchasing critical illness insurance coverage as an add-on for more intensive treatments.
How to claim mental health insurance?
The steps for raising a claim for mental health insurance are:
- Inform your insurer: Call them as soon as you go to the hospital or start planned treatment.
- Send in the necessary paperwork: This could include your medical records, prescription information and the hospital's treatment plan.
- Cashless or reimbursement claim: If a hospital is in the insurer's network, it may offer cashless treatment. If not, you can pay up front and then ask for the reimbursement.
Always check to see if the healthcare centre you are going to is reputable. This makes the claims procedure easier and less likely to be turned down.
Conclusion
Sometimes, mental health problems are even harder to deal with than physical illnesses. With the correct insurance, you won't have to worry about money getting in the way of your treatment and recovery. Your coverage can help you out whether you're coping with a short-term problem or a long-term illness.
While you take care of your mind and body, we'll take care of your finances when you're sick. Fill out the form on this page to get personalised health insurance advice and solutions. A good health insurance plan can help you and your family tackle life's challenges without having to worry about medical expenditures.
FAQs
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Do all health insurance plans cover mental illness?
According to the Mental Healthcare Act of 2017 and the rules issued by the Insurance Regulatory and Development Authority of India (IRDAI) in 2018, all health insurers must offer coverage for mental illness.
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Can I get mental health care without having to pay for it?
Yes, you can get treatment without paying upfront as long as the hospital is in your insurance company's network and the treatment matches coverage restrictions.
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Will insurance pay for therapy sessions?
Some plans pay for therapy sessions, but a lot of them only pay for therapy if you are in the hospital. Always read the policy terms of your insurance.
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Is there a waiting period for mental illness coverage?
Yes, most policies require you to wait 1 to 2 years before they will cover mental illness.
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Is it possible for seniors to acquire mental illness coverage?
Yes, some health insurance policies for seniors cover mental illness, although the premiums may be higher.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.