Mental illness is an epidemic. About 10% of the population suffers from some form of mental ill health. Many are moderate anxieties, stress disorders or addictions that can be managed through counseling or medication. However, a small proportion (0.5 to 1% of the population) suffer severe conditions such as Schizophrenia or Alzheimer's that require lifelong care and, in a few cases, hospitalisation.

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A recent judgment by the courts, followed up by an Insurance Regulatory and Development Authority of India (Irdai) order, bars insurers from excluding treatment for mental illness. This is a good step but addresses a small part of a much wider issue. This regulatory order means that hospitalisation costs for treatment of mental ill health will be paid for by health insurance. However, most mental health situations do not require hospitalisation. A senior doctor at a tertiary centre that sees mainly referred cases shared that they get 400 patients a day of which one may need hospitalisation. Most treatment is through medication which is also inexpensive. The most significant costs are a caregiver's time or loss of income because of ill health. These costs are currently not covered by insurance and unlikely to be in the near term.

The bigger issue is that if you are mentally ill then it is difficult to get health insurance to cover you for physical ailments as well. The proposal form for most insurers specifically asks about your mental health and a negative response is often grounds for rejecting the proposal. There are some ways to address this.

First, buy health insurance when you are healthy and do not really need the insurance. This is one decision you should not delay. I get the most queries on health insurance after people fall ill. The healthy should also be concerned. Buy a standard comprehensive health insurance and a critical illness plan. The health insurance will cover diseases that need day-care procedures or hospitalisation and the critical illness policy will insure diseases such as Alzheimer's or Parkinson's that do not require hospitalisation, but are still expensive because of the homecare needed. Some insurers have now introduced products that pay for counselling services or have an Out Patient Department (OPD) limit that can be used for medication.

Second, recognise that if you already suffer from a mental illness your options narrow significantly but are not completely ruled out. You can be insured through a group health insurance scheme, if your company provides that. If you want to buy a personal insurance, identify insurers that do not specifically ask about mental illness in their proposal forms. When you fill up a proposal form answer what is asked for and no more.

Third, recognise that the mentally ill, like anyone else, face many risks that can be insured. These risks include accidental death, disability and property damage. At the very minimum these risks should be covered through regular personal accident and property insurances.

Insurers have got better at understanding and covering illnesses, in general. Chronic diseases such as diabetes or hypertension are now routinely insured. Some years ago, people with neurological illnesses such as epilepsy were not insured. This has changed now.

Do not fall into the trap of hiding your illnesses from the insurer. It will only result in financial loss because any future claim will be denied, premiums forfeited, and policy cancelled. Insurers know how to find out about pre-existing conditions. They look at doctor's notes , nurse station reports and internal case sheets. Fill the proposal form yourself and verify that your pre-existing conditions are listed in the policy contract.

There is considerable stigma attached to mental illness. By treating physical and mental illnesses similarly, insurers can help reduce this stigma.

The writer is co-founder, www.securenow.in