Mental health insurance is rapidly gaining popularity in India as more people seek coverage for psychological well-being. Digital insurance platform Policybazaar has reported a 41% year-on-year increase in online searches for mental health insurance between 2024 and 2025.
This growing interest is largely driven by changing attitudes toward mental health, especially in urban areas. The wider availability of outpatient department (OPD) services in insurance plans is also a key factor. Public awareness of mental health issues has increased significantly since the COVID-19 pandemic, encouraging more people to consider insurance for mental health care.
Rise in Mental Health-Related Claims
Claims related to mental health — including therapy, psychiatric consultations, and medications — have risen by 30% to 50% over the past two to three years. Anxiety accounts for about one-third of these claims, while depression represents 25% to 30%.
Who’s Using Mental Health Insurance?
The highest usage is among individuals aged 25 to 35. This age group often faces work stress, financial pressures, and major life changes. Young policyholders frequently use digital tools to access therapy services. Women are also more likely to opt for plans with mental health coverage, showing a 27% higher enrollment rate compared to men.
More than half of the users are based in India’s tier 1 cities. Factors such as better access to mental health specialists, higher income, and corporate wellness programs support the trend in metropolitan areas.
Siddharth Singhal, head of health insurance at Policybazaar, highlighted the shift in public perception.
Workplace Burnout on the Rise
Separate global research from the Boston Consulting Group points to rising mental health challenges in the workplace. A 2024 survey of over 11,000 employees across eight countries found that 48% reported symptoms of burnout. India recorded the highest burnout rate at 58%.
The study also found that feelings of exclusion at work increase the risk of burnout. Employees from less-included groups — including women, LGBTQ+ individuals, people with disabilities, and deskless workers — reported higher burnout levels.
As more Indians turn to insurance for mental health support, experts stress the importance of improving access, reducing stigma, and strengthening coverage to meet growing demand.
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