Mental Health Insurance Cover: IRDAI has issued instructions that all insurance products shall provide cover related to mental illness and comply with the provisions of the MHC Act, 2017. Insurance companies are requested to confirm this compliance before 31 October 2022.
New Delhi. Despite a 5 year old law to include mental health related diseases in the insurance policy, 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 of India (IRDAI) recently directed insurance companies to provide cover for mental illness under health insurance policies before 31 October.
IRDAI gave instructions to insurance companies
IRDAI issued instructions saying that all insurance products will provide cover related to mental illness and follow the provisions of the MHC Act, 2017. Insurance companies are requested to confirm this compliance before 31 October 2022.
In August 2018, IRDAI 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 purpose of the Mental Healthcare Act 2017 is that every citizen suffering from mental illness can get the right health care and services. According to the IRDAI circular, by October 31, 2022, all insurance companies will have to make all insurance products in such a way that they can cover mental illness or mental illnesses.
Sources associated with the insurance industry say that public sector insurance companies have provided the facility of cashless treatment for mental illnesses, but private insurance companies have not included these provisions. But now with the instructions of IRDA, the pressure on the insurance companies will increase and the policy holders will get its direct benefit. However, it is not yet clear that what kind of problems related to mental health are going to be included in the health policy by the insurance companies.
The World Health Organization estimates that the burden of mental health problems in India is 2,443 disability-adjusted life years (DALYs) per 100,000 population and the age-adjusted suicide rate is 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.
