Study reveals 30-50% increase in mental health insurance claims

A recent study conducted by Policybazaar indicates a 30-50% increase in mental health insurance claims over the last two to three years. The rise is largely attributed to claims filed for anxiety and depression, which together account for a significant portion of these claims.

The analysis, which reviewed more than 40,000 claims across India for the 2024-2025 period, highlights that anxiety disorders are the leading cause of claims, representing 30-35% of the total. This category includes conditions such as generalized anxiety disorder and panic disorder. Depression follows closely behind, accounting for 25-30% of claims, with major depressive disorder and dysthymia being prevalent among the affected.

Other contributors to the claims include insomnia and adjustment disorders, which make up 5-10% of the total, and workplace stress and burnout, accounting for 15-20%. Additional mental health issues, such as obsessive-compulsive disorder, post-traumatic stress disorder, and bipolar disorder, collectively represent about 5% of claims.

The study also reveals that women’s engagement with mental health insurance is notable, with 27% likely to enroll in mental health coverage. Furthermore, 65% of women who have insurance choose policies that include add-ons or features specifically addressing mental and hormonal health issues.

Interest in mental health insurance has surged, with a 41% year-on-year increase in searches related to this coverage in 2025. This trend is particularly pronounced in tier 1 cities, which account for 50-55% of the uptake in mental health insurance.

The age group leading in both search interest and claims is between 25 and 35 years, indicating a growing awareness and acknowledgment of mental health issues among younger adults.

In summary, the rise in mental health insurance claims underscores an urgent need for enhanced mental health resources and support, particularly for anxiety and depression. As awareness increases, more individuals are seeking the necessary coverage to address their mental health needs.