Nearly 43% of organizations lack mental health benefits in their insurance plans, leaving employees vulnerable
Swapnil R Mishra
To mark a World Mental Health Day, Marsh McLennan India has published a whitepaper that examines the current state of mental health insurance in the country, underscoring the urgent need for enhanced coverage within India’s insurance framework. The report reveals that Indian employees are working longer hours than their peers in other major economies. The shift to a hybrid work model following the pandemic—blending remote work with in-office responsibilities—has often blurred the lines between personal and professional time.
Indian employees are experiencing heightened workload expectations, significant performance demands, and challenges in maintaining work-life balance. In industries such as IT, finance, and startups, where a constant availability culture is common, stress levels are rising sharply.
As per the white paper, India’s mental health parity mandate is not adequately reflected in insurance coverage. Notably, numerous group plans omit mandatory mental health benefits, prioritizing inpatient care over outpatient services, resulting in suboptimal claim utilization and policyholder dissatisfaction Key finds on state of mental health insurance in India are:
- 43% of organizations do not offer mental health benefits in their group insurance plans
- Claims utilization for mental health in India remains below 1% highlighting dissatisfaction as compared to insurers ranking mental health as one of the top 5 risk factors for medical claims cost globally,
- India faces a shortage of specialized mental health hospitals, rehabilitation centres, and a TPA structure equipped to handle outpatient mental healthcare needs
- Treatments for substance abuse, self-harm, or suicide are standard exclusions in group insurance plans thus limiting access to comprehensive care for individuals seeking treatment for mental health issues. Employers must carefully review plans with insurers to address workforce needs
Many companies offer mental health support through wellbeing programs or Employee Assistance Programs (EAPs). However, these services can be underutilized due to lack of awareness, stigma, or confidentiality concerns, creating barriers to access.
Below findings also reveals an ardent need to take required measures by HR department of organizations to address mental health wellbeing of their employees:
- 87% employees have reported working while feeling mentally unwell.
- 48% stated that employees face stigma and fear discrimination.
- 63% expressed dissatisfaction with the current mental health coverage provided by their employers.
Commenting on the whitepaper, Sanjay Kedia, CEO, Marsh McLennan states that, “At Marsh McLennan, we are focused on designing insurance solutions that go beyond hospitalization and cover a broad spectrum of mental health treatments, ensuring employees have seamless access to care. Mental health awareness is no longer enough; we must equip organizations with robust insurance offerings that address mental health comprehensively from early intervention and prevention to rehabilitation and crisis management. A well-rounded insurance plan not only helps manage business risks but also enhances employee well-being, making it a key differentiator in today’s competitive landscape”.
Prawal Kalita, Mercer Marsh Benefits Leader, India added, “The mental well-being of the workforce is critical to achieving sustainable and inclusive economic growth, and employers are taking various steps to support employee mental wellbeing. Employees often struggle to access the care they need due to limited insurance coverage and policies. Creating a workplace that truly supports mental well-being requires a multi-pronged approach”.
