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~Stress, Screens, and Searches: Policybazaar’s latest analysis shows what’s driving India’s Mental Health Insurance boom~
Key stats from the analysis
- +41% YoY growth in mental health insurance searches (2025 vs. 2024)
- 30–50% rise in mental health–related claims over the last 2–3 years
- Anxiety disorders account for 30–35% of mental health claims, Depression makes up 25–30% of claims
- Young adults (25–35) lead in search interest, adoption, and claims
- Women are 27% more likely to enroll in mental health coverage
- Tier 1 cities account for 50–55% of mental health insurance uptake
+41% year-on-year growth in mental health insurance searches (2025 vs 2024)
More users are proactively researching mental health coverage, driven by:
● Post-pandemic shift in how people value mental well-being
● Wider availability of OPD benefits
● Reduction in stigma, especially in urban and educated circles
This signals a clear behavioral shift where mental health is now actively considered while evaluating health insurance, not an afterthought.
Mental health claims up by 30–50% in the last 2–3 years
Mental health–related claims — therapy sessions, psychiatric consultations, and prescribed medication — are no longer fringe or rare.
● Therapy and counseling have become common uses of OPD benefits
● Cashless mental health services are being utilized more frequently
This uptick is indicative of both increased comfort in seeking help and the growing relevance of mental health in everyday life.
Young adults lead usage: Millennials & Gen Z drive mental health adoption
Age group 25–35 is most likely to opt for and use mental health benefits. This cohort shows the highest search interest, policy adoption, and claims:
● They face unique stressors: work-life imbalance, financial insecurity, and job changes.
● They regularly file claims for therapy, stress counseling, and anxiety medication
● This age group also engages actively with digital mental health platforms and app-based therapy tools
The surge among this group correlates with increased awareness, openness, and life-stage pressures.
What are people claiming for?
| Condition | Share of Claims |
| Anxiety Disorders (incl. Generalized Anxiety, Panic Disorder) | 30–35% |
| Depression (incl. MDD, Dysthymia) | 25–30% |
| Workplace Stress & Burnout | 15–20% |
| Insomnia, Adjustment Disorders | 5–10% |
| Others (incl. OCD, PTSD, Bipolar) | <5% |
Most claims are for mild to moderate conditions, reflecting higher detection and openness to early intervention. Chronic and severe disorders remain underreported, possibly due to stigma and a lack of diagnosis.
Where is the uptake happening?
Tier 1 cities dominate with 50–55% share. Uptake is significantly higher in metro areas due to:
● Greater access to therapists and mental health networks
● Higher disposable income to afford top-up coverage and therapy add-ons
● Progressive corporate cultures encouraging mental well-being
Women leading mental health coverage uptake
They are 27% more likely to enroll in plans with mental health benefits.
● 65% of insured women choose policies that offer add-ons or features addressing mental and hormonal health
● Higher claim rates for stress, anxiety, and depression linked to reproductive life stages and emotional caregiving roles
Claims align with life stages and transitions
Analysis of first-time claims suggests major life events often trigger claims:
| Life Stage | Common Triggers |
| Early Career (20s–30s) | Career pressure, possible relocation due to job |
| Mid-Life (35–50) | Burnout, financial responsibilities, caregiving for children and parents |
| Post-Retirement (50s–60s) | Feelings of isolation, reduced social engagement, health-related anxiety (claim rates remain low here, possibly due to stigma and digital barriers) |
Siddharth Singhal, Head of Health Insurance at Policybazaar, says “Mental health is no longer an afterthought when it comes to insurance — it’s becoming a priority. 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 well-being but are actively seeking financial protection for it. 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.”
