Mental health illnesses have skyrocketed around the world after COVID and related restrictions. However, although awareness of mental illness has greatly increased compared to the past, it remains a taboo subject in developing countries like India, resulting in most cases going unreported or unidentified. People with mental health conditions must have access to reliable and competent medical care similar to the care available to people with physical disorders, in order to permanently end the stigma. In a recent WHO report, it is estimated that one in eight people suffer from mental illness. It is believed that in India nearly 80% of mentally ill patients do not seek treatment due to lack of awareness, social pressures or lack of access to treatment.
Examples: Simone Biles, 4-time Olympic gold medalist, seeking glory at the world’s most prestigious tournament, dropped out of the team at the Tokyo Olympics final to prioritize her mental health over a medal. Many Indian celebrities like Deepika Padukone, Anushka Sharma and Honey Singh have been outspoken about her mental health issues. Furthermore, depression and anxiety are estimated to be the most common mental disorders in India.
Being able to identify, accept and transmit mental illness is the first step towards treatment. While awareness of these is much higher than before, the road to having the required focus in terms of health care budgets and fighting social taboo is still a long way off.
In 2018, IRDAI issued a welcome directive to cover mental disorders without discrimination against people suffering from mental illness and that they should be assessed in a similar way to physical disorders, depending on the merits of the case and the extent of the condition.
A person’s mental health problems can range from minor, treatable conditions to critical conditions like schizophrenia that significantly affect life insurance underwriting.
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Mental disorders are evaluated and treated according to risk category where the selection of risk profiles with mental health disorders is similar to the selection of risk profiles with physical disorders. Based on the same, the patient is granted life insurance with standard premium rates or with modified terms and the risk can also be postponed.
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The insurer may request the following to assess the risk profile: insurable interest, need for insurance coverage, medical diagnosis of the condition, underlying cause, disease progression, treatment, lifestyle information, employment details, etc. . These parameters will help in a fair assessment of the risk and the granting of the appropriate insurance coverage accordingly.
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It must also be assessed whether the condition affects the person’s ability to enter into a legally valid contract, a relevant condition for taking advantage of life insurance.
Author: Casparus JH Kromhout, MD and CEO, Shriram Life Insurance
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