Mental health is no longer a luxury — it’s healthcare. With rising awareness about anxiety, depression, therapy, and emotional well-being in India, mental health insurance has quickly become a must-have.
As of 2025, most health insurers must cover mental illnesses under IRDAI guidelines. But that doesn’t mean all plans are equal.
In this guide, we break down:
What Is Mental Health Insurance?
Mental health insurance is a type of health insurance that covers expenses related to mental illnesses, including conditions like:
- Anxiety and depression
- Bipolar disorder
- OCD
- Schizophrenia
- PTSD
- Substance abuse (in some cases)
It often includes services like:
- Psychiatric consultations
- Counseling or therapy sessions
- Hospitalization for mental health reasons
- Medication and follow-up care
IRDAI Rule Update (India, 2020 Onwards)
In 2018, the Mental Healthcare Act was passed.
In 2020, the IRDAI (Insurance Regulatory Body) made it mandatory for all health insurance providers to offer equal coverage for mental illnesses, just like physical illnesses.
That means:
- No discrimination
- Mental illness hospitalization MUST be covered in regular plans
What Expenses Are Typically Covered?
Covered | Not Covered |
In-patient hospitalization (psych ward) | OPD therapy in many plans |
Prescription psychiatric medication | Experimental treatments |
Psychiatrist/psychologist visits | Non-certified practitioners |
Counseling during hospitalization | Self-diagnosis/therapy apps |
Many newer plans are now adding daycare OPD coverage for therapy too — but you MUST read the fine print.
Best Mental Health Insurance Plans in India (2025)
Here’s a comparison of some of the strongest plans offering mental illness coverage this year:
1. Niva Bupa – ReAssure 2.0
- Covers mental illnesses under in-patient hospitalization
- Lifetime renewability
- Good mental wellness programs included
- OPD treatment not fully covered
⇒ Premium: Starting from ₹9,000/year for ₹5L sum insured
2. Care Health – Care Supreme
- Coverage for mental illness + therapy during hospitalization
- Modern treatments supported
- Annual mental wellness check-ups
- OPD-level therapy sessions usually excluded
Premium: Approx ₹8,500/year for ₹5L coverage
3. Star Health – Star Comprehensive Plan
- Covers hospitalization for mental and neurodevelopmental disorders
- Psychiatric diagnosis and support included
- Family floater available
- No OPD reimbursement for therapy sessions
Premium: Around ₹10,000/year for ₹5L (adult, age 30)
4. HDFC ERGO – my:Health Suraksha
- Approved mental illness treatments under hospitalization
- Telemedicine for follow-ups
- Good customer service
- OPD + medication costs excluded in most cases
Premium: From ₹9,000/year for ₹5L
5. ICICI Lombard – Complete Health Insurance
- Covers in-patient treatment for mental disorders including depression, anxiety
- Global coverage and app-based wellness tracking
- OPD and therapist consultation mostly not included
Premium: Starts at ₹8,800/year
⇒ Note: Prices vary based on applicant’s age, location, selected sum insured, and add-ons.
How to Choose the Right Plan for Mental Health Coverage
1. Check OPD coverage
If you want regular therapy or psychiatrist visits, look for add-ons or special OPD plans.
2. Sum insured should be >= ₹5 lakhs
In-patient psych treatment can be expensive — especially at private institutions.
3. Hospital network should include mental health hospitals
Check whether NABH-accredited mental health facilities are included.
4. Don’t rely on psychotherapy apps
Most insurers don’t cover self-help platforms or uncertified sessions — check if the policy supports clinical psychologist claims.
5. Look at claim settlement experience
Choose insurers with easy, paperless reimbursement/claim processes.
Pro Tip:
Some “group corporate plans” now include mental health outpatient visits. Ask your HR if your company plan supports this.
Common Misunderstandings
1. “Mental illness cover must include all therapy sessions.”
→ Not always. Most basic plans only cover hospital-type admission.
2. “I need a diagnosis first to buy insurance.”
→ No, you can apply anytime (though pre-existing mental health conditions must be declared)
3.“Mental illness insurance is always expensive.”
→ Regular health plans now include it — no need to pay extra unless you add OPD.
Conclusion
Mental health insurance is no longer optional. It’s an essential tool in protecting your:
- Mind
- Future
Choose a plan that gives you in-patient & follow-up support, and always read your policy wordings clearly.
Don’t wait for a crisis — build a strong support system now, including your insurance.
Frequently Asked Questions (FAQ)
1. Is mental health covered under health insurance in India in 2025?
Yes. As per the Mental Healthcare Act, 2017 and IRDAI directive (effective from October 2020), all health insurers in India are required to cover mental illnesses at par with physical illnesses. In 2025, this includes hospitalisation due to psychiatric disorders, counselling, psychotropic medications, and sometimes OPD treatment. Most comprehensive health plans now include mental health as a standard or add-on feature.
2. Which health insurance is best for mental health treatment in 2025?
In 2025, top insurers for mental health coverage include:
- HDFC ERGO my:health Suraksha – Covers psychiatric hospitalisation and OPD
- Niva Bupa ReAssure 2.0 – Extended coverage with therapy benefits
- Star Health Comprehensive Plan – Mental health cover for a wide range of conditions
- Aditya Birla Activ Platinum – Optional rider for counselling and teleconsults
Coverage varies, so always check for sub-limits, exclusions, and network hospital support.
3. What mental illnesses are covered under health insurance in India?
Most policies in 2025 cover:
- Depression and anxiety disorders
- Schizophrenia and bipolar disorder
- Obsessive Compulsive Disorder (OCD)
- Post-Traumatic Stress Disorder (PTSD)
- Personality disorders & panic attacks
Insurers follow diagnoses listed by recognised bodies such as ICD-10/ICD-11 standards and DSM-5 guidelines. Coverage may differ based on plan and associated co-morbidities.
4. Does Indian health insurance cover therapy or counselling sessions?
Yes, but with limitations. Some policies in 2025 cover a fixed number of OPD sessions or therapy consultations per year. For instance:
- HDFC: Up to ₹50,000 per year for OPD + counselling
- Niva Bupa: 8 sessions/year under ReAssure Top-Up
- Aditya Birla: Tele-counselling included in rider
“OPD claims usually need reimbursement, not cashless presentation.”
5. Can I buy mental health insurance specifically in India?
You can’t buy a standalone mental health policy yet in 2025, but many comprehensive health plans offer strong mental health coverage (as part of base plan or as a rider). Always choose plans that clearly mention psychiatric care, OPD, and counselling support.
Alternatively, group insurance by employers often includes mental wellness benefits through digital platforms.
6. Is hospitalisation for mental illness covered under insurance in India?
Yes. IRDAI mandates full coverage for in-patient psychiatric hospitalisation. That means:
- Room rent, doctor’s fee, nursing
- Diagnostics, medication, and therapy during hospitalisation
- Rehab & recovery for conditions like schizophrenia or suicidal tendencies
Ensure that the hospital is on the insurer’s cashless network and offers approved psychiatric facilities.
7. How to file a claim for mental health treatment under insurance in 2025?
You can file claims in two ways:
For Cashless Claims:
- Get admitted to a network hospital
- Submit psychiatric diagnosis + referral
- Hospital gets pre-approval from insurer
- Bills are settled directly by insurer (excluding non-covered items)
For Reimbursement Claims:
- Submit medical bills, consultation reports, and prescriptions
- Upload documents on insurer’s portal
- Reimbursement typically processed within 10–21 days
- Always save digital and hardcopy records for compliance.
8. Do all Indian insurers follow IRDAI mental health coverage rules?
Yes. As mandated in the IRDAI circular dated June 2, 2020, and reaffirmed in 2023, every health insurer registered in India must include mental illness coverage. By FY 2024–25, 91% of health insurance plans include mental health care either in their base plan or as an add-on.
Failure to comply can result in penalties under Section 14 of the Insurance Ombudsman rules.
9. Will buying mental health insurance affect my premium in 2025?
For most standard plans, mental health coverage is included without additional premium. However, if you opt for riders or enhance OPD/therapy caps, your premium might be slightly higher. Generally, insurers review:
- Your medical history
- Disclosure of existing mental health diagnosis
- Prescription medication usage
Underwriting may adjust the premium accordingly, but insurers cannot deny coverage for previously treated or diagnosed mental illness unless specifically excluded.
10. Is psychiatric treatment covered under Ayushman Bharat or CGHS?
Yes. Under Ayushman Bharat PM-JAY, mental healthcare is included, especially for eligible rural families and low-income groups. CGHS and ESI also cover psychiatry consultations and hospitalisation for government employees and workers respectively.
These schemes promote mental wellness as part of universal health coverage, and coverage is based on treatment guidelines by the National Health Authority (NHA).
Know also: Freelancer Income Tax Filing Guide in India (2025) – Complete ITR Filing, Deductions & More
