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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.

 

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