Zonal Health Insurance Decoded

What is Zonal-Based Health Insurance?

Most of us buy health insurance to protect ourselves against the ever-increasing cost of medical treatment. The cost of insurance, however, is based on various factors such as age, medical history, occupation, and even the location where one resides.

Zonal-based health insurance provides insurance coverage where the premium charged is based on the location of the customer. The policyholder pays a differential premium depending upon the place he/she is residing.

If the policyholder opts for family coverage, in that case, the premium is generally based on the location of the primary policyholder.

Why is there a Difference in the Premium Charged for Different Locations?

We live in a country, where one city differs from another on a variety of factors. These differences could be related to the economy, environment, and even infrastructure. There are differences, in terms of the cost of living as well.

The cost of medical expenses also varies from one city to another. Generally, metros and large cities are more expensive than smaller ones. Zonal pricing allows the insurance companies to pass the benefit of lower medical costs in smaller cities, to the customer. 

The difference in premium to be paid for health insurance in different cities, thus, becomes advantageous to people, living in places associated with lower expenses. This leads to equity in the premium calculation for customers, based in different places.

How does Zone-Based Pricing Work?

The zonal health insurance pricing considers the cost of insurance in different locations.  To offer a competitive premium to customers of different cities, insurance companies have divided India into different zones.

These zones are as below. Please note that this classification can vary from insurer to insurer.

Zones here refer to the classification of the cities based on certain criteria, especially the costs of medical treatment. Cities falling in a particular zone are assumed to have similar expenses for healthcare treatments.

How does this Classification Work?

The premium for health insurance is generally higher in cities falling in zone-1, where the cost of medical treatment is also supposed to be higher.

Let’s understand this with an example. Suppose Akash lives with his family in Dehradun and has taken a family floater health insurance. He pays a premium of Rs. 12,000 for this policy. A similar health insurance plan is also taken by Amit, who resides with his family in Mumbai. He, however, pays a premium of Rs. 15,000 for this insurance protection.

The difference in premium if all other conditions remain the same, will be because of the difference in the zone and the consequent location of the two individuals.

Please note that this premium amount is just an approximation for the sake of understanding. The actual premium will depend upon a lot of other factors as well in addition to location. This may include age, medical history, etc.

What if Someone Moves from One Zone to the Other?

People nowadays keep moving around frequently, for personal and professional commitments. 

So, what will happen to the health insurance taken in a particular zone? Will it carry forward to the new zone you will be residing in?

Let’s understand this with an example.

Sneha was residing in Hyderabad when she bought her health insurance plan. She got a new job in Mumbai and will be settling in that city now. In this case, she can approach her insurer and ask for a zone upgrade.

She might have to pay some extra premium. Her new premium, however, will now allow her to manage the extra cost of medical expenditure in the new city.

A similar reduction in premium can also happen in case of a reverse movement. If Sneha would have shifted from Hyderabad to let’s say, Coimbatore. She would be entitled to pay a lesser premium now. This would be a zone downgrade for her, and the new premium would be in line with the new zonal demarcation.

Is Zone-1 the Best Zone to be in?

The cities in zone-1 are the ones with the most advanced medical facilities in the country. They are also the cities with the most expensive cost of treatment. One can, however, also opt for zone-1 coverage by paying an extra premium, a service offered by some insurance companies.

This will allow you as a customer, to use the services in any part of the country without any hassle. Zone-based pricing and zonal health insurance are some of the ways to ensure appropriate coverage for customers. 

One needs to look at their own specific needs before deciding on the policy to buy. Zonal health insurance is one way to ensure the premium paid reflects the actual expenditure incurred toward medical costs.

It is advisable to research thoroughly and opt for the plan which best addresses all your specific health insurance needs. Aditya Birla Health Insurance can help you in this regard by allowing you to choose the policy best suited to your requirements.

The market offers multiple options with many health insurance plans to choose from.  However, one needs to engage in a detailed exploration of various plans before choosing the appropriate one.

Aditya Birla Health Insurance (ABHI) keeps the needs of its customers at the forefront to offer the best health insurance plan appropriate to their specific needs. ABHI believes in “Health insurance that cares beyond financial protection.”

ABHI has a presence in over 2300 cities in India. 

It is one of India’s leading and most trusted health insurance providers. ABHI also rewards you for your healthy lifestyle choices. These rewards can be redeemed when you choose to buy your health insurance plan from Aditya Birla Health Insurance.

Health Insurance Plans by Aditya Birla Health Insurance

Now, you can choose the plan you feel is best for you and your family members. Below is the list of some of the health insurance plans from Aditya Birla Health Insurance. Clicking on the link below will give you more information about these plans. You can explore and choose the plan that best meets your needs.

1. Activ Assure Diamond - https://www.adityabirlacapital.com/healthinsurance/activ-assure-diamond
2. Super Health Top-Up - https://www.adityabirlacapital.com/healthinsurance/super-health-topup
3. Active Health Enhanced  Insurance - https://www.adityabirlacapital.com/healthinsurance/active-health-enhanced-insurance
4. Activ Fit - https://www.adityabirlacapital.com/healthinsurance/activ-fit