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Know the concept of no room rent capping in health insurance

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Published on June 17, 2021. EST READ TIME: 3 minutes

Our health insurance policy is loaded with various benefits and coverages. But most of the times you are unaware about the meaning of the terms mentioned in the policy. One very common coverage is no room rent capping in the health insurance policy. Let us understand this coverage in depth:

What is room rent limit?

Most health insurance policies provide a comprehensive coverage. Hence, it is important that when you choose a health insurance policy, you go with the one that offers maximum coverage.

The limit imposed on the coverage of boarding expenses or room rent in the hospital is called as room rent limit. In simpler terms, it is the maximum amount of per day room charges that you can claim in case you get admitted to a hospital.

 Now, there are four types of health insurance room rent coverage

• Room Rent without Sub Limits

• Room Rent with Co-payments

• Room Rent with specified room types

• Room rent without sub-limits as an add on cover

Room Rent without Sub Limits

The most looked after feature with any health insurance company is no restriction on room rents. This benefit gives you the much needed freedom to choose your desired room type. It could be a general ward or private suite; you can choose your most-suited room type. You don’t really have any restriction on choosing your room type.

Room Rent with Co-payments

At times, health insurance plans have room rent limits on co-payment basis. This means if your health insurance specifies a limit for room rent, then anything that you spend over and above the specified room rent has to be paid by you/the insured. This helps in payment reduction and allows you to share the expenses of room rents.

Room Rent Cover with Specified Room Types

Few health insurance companies offer health cover with specified room types. Like, you can go for a twin sharing suite or a private suite. This means that you can get hospitalized in these pre-mentioned room types only.

Room rent without sub-limits as an add on cover

 You can buy no room rent sub-limits as an add on cover. You don’t get it in the default policy; however you can pay an additional amount for getting this cover.

What is No Room Capping?

Many health insurance companies apply restrictions on room rent, the terms and conditions of which are specified by the insurance company. The limit is set irrespective of the sum insured under the policy. The monetary limit, room rent capping imposed on rent, nursing, and boarding expenses can either be determined as the percentage of sum insured amount or as the exact amount. For instance, room rent capping of 2% of the sum insured or of Rs. 3,000. A health insurance policy with no room rent capping is a preferred choice for policy buyers as it has no restrictions in terms of coverage.

If you had to opt for a room which exceeds your policy’s room rent limit, the health insurance company is liable to pay only the amount it is bound to pay under the policy terms and conditions. To avoid paying inflated charges on medicines and incidentals when staying in delux or premium hospital rooms, try to get a Health Insurance policy that has no room rent capping or has a higher capping limit so that it can cover any room you may have to take. This can help ensure complete peace of mind in the event of an extended hospital stay.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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