Mental Cover: IRDAI has issued instructions saying that all insurance products will provide cover related to mental illness and will comply with the provisions of the MHC Act, 2017. Insurance companies are requested to verify this compliance before 31 October 2022.
New Delhi. Despite a 5 year old law to include mental health related diseases in insurance policies, many insurance companies did not include provisions related to it. But now once again the insurance regulatory body IRDA has asked private insurance companies to ensure compliance of these rules by the end of this month.
The Insurance Regulatory and Development Authority (IRDAI) recently directed insurance companies to provide cover for mental illness under health insurance policies before October 31.
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IRDAI has issued instructions to the insurance companies
saying that all insurance products will provide cover related to mental illness and will comply with the provisions of the MHC Act, 2017. Insurance companies are requested to verify this compliance before 31 October 2022.
In August 2018, IRDAI had directed all insurance companies to comply with the provisions of the Act with immediate effect and said that insurers should not discriminate between physical and mental illnesses.
What is Mental Healthcare Act 2017?
The Mental Healthcare Act 2017 aims to ensure that every citizen suffering from mental illness can get the right health care and services. According to the IRDAI circular, by 31 October 2022, all insurance companies will have to make all insurance products such that they can cover mental illness or mental illnesses.
Sources in the insurance industry say that public sector insurance companies have provided cashless treatment for mental illnesses, but private insurance companies have not included these provisions. But now with the instructions of IRDA, the pressure on insurance companies will increase and its direct benefit will be given to the policyholders. However, it is not yet clear what kind of mental health problems insurance companies are going to include in health policies
Mental health issues on the rise in India
The World Health Organization estimates the burden of mental health problems in India at 2,443 disability-adjusted life years (DALYs) per 100,000 population and an age-adjusted suicide rate of 21.1 per 100,000 population . The economic loss due to mental health conditions is estimated to be $1.03 trillion between 2012 and 2030
At the same time, since the corona epidemic, the cases of mental health have increased and the focus has also increased on them. People in India have become more sensitive to stress and anxiety and are taking medical treatment to treat them.
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