Medical emergencies are unwanted guests for everyone. It brings along with it an atmosphere of chaos and panic for everyone related to the patient. More importantly, it causes a financial burden on the person who has to cover the cost of treatment. If someone in your family required urgent hospitalisation, paying out of pocket can be burdensome.
Having a health insurance policy
in such a situation can be a great help since it helps you cover costs related to unexpected medical emergencies. This also allows the patient to be as comfortable as possible in the hospital.
However, there are some aspects of health insurance that you should know to ensure you don’t get misguided by misinformation. One such aspect that many people may not know much about is the room rent limit. Here is more information to help you get a better understanding of this feature.
What is the room rent limit?
The room rent limit refers to the maximum amount that the insurer is willing to reimburse or pay for the room rent and, in some cases, the associated charges when the insured is admitted to a hospital.
Consider this example: Rohan has to be admitted to a hospital for routine surgery. His stay will last for a week. After the surgery is over and his condition is stable, Rohan is to be shifted to another ward. The room rent limit of his health insurance is Rs.3000 per day. However, there are only two rooms available: one general room which costs Rs.2000 per day, and a deluxe private room, costing Rs.4000 per day. If Rohan opts for the general ward, his policy will cover the cost. However, if he opts for the deluxe room, he might end up paying the additional Rs.1000 out of pocket. *
When you purchase your policy, your insurer makes sure to mention the room rent limit in the policy document to avoid any misunderstandings in the future. The room rent limit varies from insurer to insurer.
Types of room rent limits
You may find either of the four options in your policy:
1. Room rent with sub-limits
In this coverage, there is no cap on the room rent limit provided in your insurance. During hospitalisation, you are free to choose any room as per your liking for further treatment and recovery.*
2. Room rent with co-payments
In this coverage, the room rent comes with a cap on the limit. Just like the example given above, if the cost of the room falls within the maximum limit, it will be covered by the policy. If it exceeds the limit, the additional cost will be paid for by the policyholder.*
3. Room rent for specific rooms
In this coverage, the insurer will provide room rent only for specific types of rooms. This means, if the insurer covers only private rooms or twin-sharing rooms, you might have to shift to the same to receive coverage.*
4. Room rent cover as an add-on
There can be instances where an insurer does offer room rent by default in their policy, but as an add-on with the policy. You are required to purchase this add-on if you wish to save on the cost of treatment and get better facilities during your hospitalisation
Things to know about the room rent limits
When it comes to room rent limits, you need to understand that the cost of a room does not cover only the room charges. Some of the additional costs that you should be aware of include:
- Doctor’s visiting fees
- Nurse charges
These aspects can escalate your room charges. Before you sign your health insurance policy proposal, be sure to check the effect of these aspects on not just the room rent but also your overall health insurance policy cost.
When trying to understand the importance of health insurance
, you also need to understand the significance of the room rent limit that is provided to you. Selecting a policy with high sub-limits or coverage for specific room types can be beneficial if you wish to receive the best treatment for yourself or your loved one.*
If your current insurer is offering a lower room rent, you can opt for a new insurer. Make sure you use their to see how much of a difference the coverage makes on the cost of your policy.
*Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.