Mental Healthcare Act 2017: The law and the insurance coverage
The Mental Healthcare Act, 2017 establishes a rights-based framework where mental healthcare is treated as a fundamental right, focuses on dignity, autonomy, and equality, and makes the state responsible for providing accessible mental health services.
Key Objectives of the Act
To provide mental healthcare and services for persons with mental illness.
To protect, promote, and fulfill the rights of such persons.
To ensure mental illness is treated with dignity and without discrimination.
To shift the approach from custodial care to a patient-centric, rights-based framework.
Rights of Persons with Mental Illness (PMI)
Right to access mental healthcare: Affordable, good quality services at government expense if the person cannot afford them.
Right to community living: No long-term confinement in institutions unless medically necessary.
Right to protection from inhuman treatment: Respect for dignity, privacy, and freedom from cruel, degrading treatment.
Right to confidentiality: Mental health information cannot be disclosed without consent (except in specific situations).
Right to legal aid: Free legal services for persons with mental illness.
Right to equality & non-discrimination: No denial of treatment based on gender, caste, religion, economic or social status.
Section 21(4) of the Act says:
“Every insurer shall make provision for medical insurance for treatment of mental illness on the same basis as is available for treatment of physical illness.”
🔹 What Mental Illnesses are Covered
Policies generally cover clinical, diagnosable psychiatric conditions (not just counseling). Examples include:
-
Mood Disorders: Depression, Bipolar disorder
-
Anxiety Disorders: Panic disorder, Phobias, Generalized anxiety disorder, OCD (Obsessive Compulsive Disorder)
-
Psychotic Disorders: Schizophrenia, Schizoaffective disorder, Delusional disorder
-
Neurodevelopmental Disorders: Autism spectrum disorder, ADHD, Learning disabilities (coverage varies)
-
Substance Use Disorders: Alcohol and drug dependence (rehabilitation may be limited or capped)
-
Eating Disorders: Anorexia nervosa, Bulimia
-
Other Disorders: PTSD (Post-Traumatic Stress Disorder), Personality disorders, Dementia, etc.
What to Check Before Buying
Given how much variation there still is, here’s a checklist for what to verify in your specific policy:
-
Is mental illness explicitly included (in-patient, out-patient, therapy, medications)?
-
Which mental illnesses are covered (diagnosed depression, anxiety, bipolar, schizophrenia, PTSD, dementia, etc.).
-
Is outpatient care / counseling / therapy included or excluded? If included, how many sessions per year, which practitioners are accepted (clinical psychologists, psychiatrists, counselors)?
-
Is there a waiting period for mental health conditions (especially for pre-existing conditions)?
-
Hospitalization duration requirement (e.g. must stay ≥ 24 hours) to get benefits.
-
Network hospitals vs reimbursement – whether treatment must be in an empanelled hospital or clinic.
-
Sum Insured and sublimits – are there lower caps for mental illness treatment, room rent, etc?
-
Exclusions – substance / alcohol / drug abuse related mental conditions, self-harm, etc.
-
Premium loading or underwriting terms if you already have or had mental illness.
-
Renewability – life-long renewability, or limits based on age / condition.
Related Articles
Menopause can cause emotional imbalance
Menopause is the time that marks the end of Womens' menstruation, and it's a natural process. Menopause happens in the age group of 40s - 50s of women. It can be diagnosed after the suspension of Menstrual periods for 12 months. Although menopause is ...Hirsutism - Causes, Symptoms and Emotional healing
Hirsutism is the condition in women that leads to excess growth of dark or thick hair in a male-like pattern on the upper lip, chin, chest, abdomen, or back instead of fine hair. This can be a distress condition, affects psychologically and ...Endometriosis - Causes, Symptoms and Healings
Endometriosis is a disease characterized by the presence of tissue resembling endometrium, a part on the lining of the uterus, outside the uterus. With each Menstrual cycle it thickens, breaking down and bleeds every time as it becomes part of it. ...Dysmenorrhea - Causes, Symptoms and Healings
Dysmenorrhea is a medical term for painful menstrual cramps or difficult menstrual flow due to uterine contradiction. There are two types: primary and secondary. Primary dysmenorrhea is the natural Menstrual cramps occurring every time and it is not ...Mental Health - About Depression and ways to overcome it
Symptoms - Not interested in talking to anyone, irritability, Persistent sadness or low mood, Loss of interest in daily activities, Fatigue, irritability, or changes in sleep and appetite, Feelings of worthlessness or guilt Causes of Depression - ...