Live in Delhi or Mumbai? You could be paying double for the same health cover

Your insurance premium isn't just about your age, medical history, or the sum insured — it also depends on something you might not have considered: your pin code. "Where you live plays a huge role,” writes insurance expert Nikhil Jha on X. 

In India, insurers divide locations into risk-based zones, and your zone directly affects the price you pay for a health policy—even if the coverage remains the same.

According to Jha, “A person in Delhi may pay way more than someone in a small town—even for the SAME policy.”

How zone-based premiums work

Insurers classify cities into three zones depending on healthcare costs, claim frequency, and medical inflation:

• Zone A (Highest premium): Metro cities like Delhi, Mumbai, Kolkata, Chennai
• Zone B: Tier-1 and Tier-2 cities
• Zone C (Lowest premium): Tier-3 cities and rural regions

Why the difference matters
 

• Healthcare in metros is more expensive, so claim amounts are typically higher
• Urban areas see more claims due to higher population density and lifestyle diseases
• Greater risk exposure in cities leads to costlier underwriting for insurers

How your zone affects your policy

• If you live in a Zone A city, your premium will be higher
• Moving from a metro to a smaller town could reduce your premium
• What if you relocate?

Some insurers adjust your premium when you change cities, while others might apply a co-pay instead

• Moving from Zone C to Zone A may mean a higher premium
• A zone-wise co-pay could kick in if portability isn’t offered

“If you travel often between zones, check if your insurer has pan-India coverage or zone-wise co-pay. It can impact your out-of-pocket expenses,” says Jha.