Health@Companion - an online insurance scheme launched by Max Bupa to reach customers in smaller cities and towns.
The product can only be bought online and would help the company cut distribution and other costs by 15 percent.
The company will thus be able to lower the premium paid by customers living in the tier-II and tier-III cities. The premium would also reflect the lower medical costs in a particular region.
"We feel that this unique product will bring in more volumes, as it gives us immense reach into the tier-II and III cities," said Manasije Mishra, chief executive, Max Bupa.
"The lower premium factor also will make the new product more attractive for buyers in these areas."
The company, which has presence in some 12 Indian cities, added that it will keep innovating new products that can be sold over the e-commerce platforms.