Zone-Based Health Insurance

The Zone-Based Premium is a price computing method used by different insurance companies. This system allows them to set a premium price according to the city where the policyholder resides. This allows people who live in smaller cities to buy health insurance for a more affordable premium. Under Zone-Based Premium, the insurance companies set a separate price of premium in metro and non-metro cities.

The Zone-Based Health Insurance premium depends on different factors. For instance, the hospitalization cost in a smaller city is lower than the metro cities, primarily because of the reduced room rent. Hence, the insurance premium paid for health insurance in smaller cities is lower. Other than that, the metro cities demand a specific kind of lifestyle, which is considered to be unhealthy, because of pollution and other factors. This results in a higher cost of health insurance.

For example, the medical cost in Bangalore, Chennai, Delhi, and other metro cities is higher than non-metro cities like Jabalpur, Agra, or Guwahati. So, if a person buys a health insurance plan in any of the metro cities, he or she has to pay a higher premium compared to a policyholder from Agra or Guwahati.

Activ Health Enhanced and Activ Health Essential are the two products from Aditya Birla Capital that offers Zone-Based Health Insurance.