Insurance providers in India instructed to cover mental illnesses in policies

The insurance regulatory body of India has decided to include mental illness under the coverage offered by various insurance companies. According to the latest advisory from the Insurance Regulatory and Development Authority of India (IRDAI), all insurance providers in the country will have to include provision for mental illnesses in all policies by October 31 this year.

The Financial Times reported that the decision was taken in accordance with the provisions provided under the Mental Healthcare Act, 2017 in India. While some illnesses were already included under the policies, the new advisory makes it compulsory to add special provisions for mental health.

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“Insurers are requested to confirm compliance before October 31, 2022,” IRDAI said.

With the economy facing threats of recession and the Indian rupee going through its worst phase against the US dollar, the insurance premiums are expected to go up in India. While the IRDAI did not directly say anything, they recommended a revision of premium rates in the future.

The other major announcement by IRDAI concerned the policies regarding newborns with internal congenital birth defects. In 2021, the insurance regulations stated that all companies had to include genetic and congenital diseases in their policies, and they cannot be used as “exceptions”.

“These instructions shall come into force with immediate effect,” the advisory read, according to PTI.

The IRDAI made it clear that any deviation from the advisory will mean not following the policies “according to their true spirit” and this move is intended to benefit the existing policyholders.