India’s mental health insurance claims rise 30% amidst growing awareness

Most claims were for mild to moderate conditions.

Mental health-related insurance claims have increased by 30% to 50% over the past two to three years, according to Policybazaar.

Searches for mental health coverage rose by 41% year-on-year in 2025 compared to 2024

The rise is attributed to greater awareness, broader OPD (outpatient department) benefits, and reduced stigma, especially in urban areas.

Anxiety disorders account for 30% to 35% of mental health claims, followed by depression at 25% to 30%. 

Workplace stress, insomnia, and adjustment disorders make up smaller but notable portions of claims. 

Most claims are for mild to moderate conditions, with therapy sessions, psychiatric consultations, and medication being the most common services used.

Young adults aged 25 to 35 are the most active users of mental health insurance. This age group leads in search interest, policy adoption, and claims, often citing stress, anxiety, and job-related pressure. 

They also show strong engagement with digital mental health platforms and therapy apps.

Tier 1 cities account for 50% to 55% of mental health insurance uptake, with higher access to therapy services, better affordability, and more supportive corporate policies playing a role.

The data also shows that first-time mental health insurance claims often align with major life events. 

Early-career pressures, mid-life caregiving and burnout, and post-retirement challenges are common triggers, although post-retirement claim rates remain low.