Room Rent Limit
Room rent limit is the upper limit to the daily room rent or room category available under a health insurance policy. If an insured person stays in a higher-category room during his stay in the hospital, the policyholder has to pay the difference in the medical expenses arising out of the higher-category room out-of-pocket.
For instance, you buy a health insurance policy with a base cover of Rs. 5 Lakh. Your policy specifies a daily room rent limit of 1% of the sum insured, which is Rs. 5000/ day. During hospitalisation, you stay in a room which costs Rs. 10000/day.
Clearly, you stayed in a higher-category room which is not covered under your health policy. Your stay in a higher-category room also increases your other charges, such as doctor’s fees, surgery costs, nursing charges, etc. In such a case, your insurer will only cover all the expenses in the same proportion as the admissible room rate/day bears to your actual room rent. Surely, you will end up paying a huge portion of your hospital bill on your own.
When you purchase a health insurance policy, ideally, look for a plan which does not have any room rent limit or room category restriction. If you end up having a health insurance policy with a room rent limit, it is good to stick to the room rent or category covered under the plan. If you upgrade your room during hospitalisation, please apply caution.
Get In Touch
Looking for some insurance related advice? You can book a call with us. It's absolutely FREE.
Get on a call
WhatsApp Us
