Mumbai: With stress escalating among Indians, there has been a 41 per cent rise in mental health insurance searches in 2025 (versus previous year) while evaluating health insurance covers. The search was largely driven by young adults, women, and those in high-stress professions, found a new survey by Policybazaar. Notably, Tier 1 cities accounted for 50–55 per cent of mental health insurance uptake due to higher disposable income, greater access to therapists and progressive corporate culture encouraging mental well-being.
The Insurance Regulatory and Development Authority of India (Irdai) in March 2023 made it mandatory for general insurers or stand-alone health insurers to launch health insurance policies that can provide coverage to people with mental illness.
The study based on Policybazaar’s booking data found that on the claims side, there was a 30–50 per cent rise in mental health related claims over the last two to three years. Most claims were for mild to moderate conditions while chronic and severe disorders remain underreported, possibly due to stigma and a lack of diagnosis.
Anxiety disorders accounted for 30–35 per cent of mental health claims while depression claims (including Dysthymia) accounted for 25–30 per cent of the claims, workplace stress and burnout accounted for 20 per cent of the claims. Insomnia, adjustment disorders (5-10 per cent), while bipolar disorders, post-traumatic stress disorders, obsessive compulsive disorder accounted for less than 5 per cent of the claims. Mental health insurance claims covered therapy sessions, psychiatric consultations, and prescribed medication. Therapy and counseling have become common uses of OPD benefits. “More users are proactively researching mental health coverage, driven by a post-pandemic shift in how people value mental well-being, wider availability of OPD benefits, reduction in stigma, especially in urban and educated circles. This signals a clear behavioral shift where mental health is now actively considered while evaluating health insurance, not an afterthought,” said the Survey.
Analysis of first-time claims suggested that major life events often triggered claims such as career pressure, possible relocation due to job, burnout, financial responsibilities, caregiving for children and parents, post retirement isolation and health related anxiety (claim rates remain low here, possibly due to stigma and digital barriers).
Age group 25–35 which face unique stressors such as work-life imbalance, financial insecurity, and job changes were most likely to opt for and use mental health benefits. This cohort showed the highest search interest, policy adoption, and claims, said the Survey. They were also found engaging actively with digital mental health platforms and app-based therapy tools. The study also found that women were more likely to enroll in mental health coverage.