Mental health insurance is gaining ground in India, driven by rising consumer interest and increased claims activity, according to new insights from digital insurance platform Policybazaar.
The firm reported a 41% year-on-year rise in online searches related to mental health insurance coverage between 2024 and 2025.
The surge is attributed to evolving attitudes toward mental health, particularly in urban regions, and a broader availability of outpatient department (OPD) services under insurance plans. This trend follows increased public focus on psychological wellbeing in the wake of the COVID-19 pandemic.
According to the analysis, mental health-related claims – including expenses for therapy, psychiatric consultations, and medication – have grown by 30% to 50% over the past two to three years.
Anxiety-related conditions make up approximately a third of these claims, with depression accounting for another 25% to 30%.
Policy usage is highest among individuals aged 25 to 35, a cohort facing work-related stress, financial uncertainty, and life-stage transitions.
Usage patterns indicate that mental health benefits are becoming a standard consideration in health insurance purchases. Younger policyholders are particularly engaged, often accessing digital tools and platforms for therapy services. Women are also more likely to enrol in plans that include mental health coverage, with a 27% higher uptake rate compared to men.
Geographically, tier 1 cities account for more than half of mental health insurance adoption. Factors such as easier access to specialists, higher disposable income, and corporate support programs contribute to the uptake in metro areas.
Siddharth Singhal, head of health insurance at Policybazaar, said mental wellness is increasingly seen as a critical aspect of health insurance planning.
“Our latest data shows a remarkable 41% surge in mental health insurance searches, driven by young adults, women, and those in high-stress professions. This points to a larger societal shift where people are not only more aware of mental wellbeing but are actively seeking financial protection for it,” he said. “With OPD benefits, cashless therapy, and wider acceptance, we’re seeing mental health move from the margins to the mainstream of healthcare planning. On an industry level and as a society, we need to keep building on this momentum by making access easier, stigma lower, and coverage stronger.”
Separate research by Boston Consulting Group highlighted broader workplace mental health concerns across global markets.
A 2024 survey of over 11,000 employees in eight countries, including India, found that 48% of respondents experienced symptoms of burnout. India had the highest burnout rate at 58%.
The study further found a strong connection between burnout and a lack of workplace inclusion. Groups reporting lower inclusion – including women, LGBTQ+ individuals, people with disabilities, and deskless workers – also reported higher burnout levels.
