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Imagine the relief of walking into a hospital during a medical emergency and choosing the best room without worrying about the cost! 😯
With no room rent capping in health insurance, you're free from the limitations of fixed daily charges for hospital rooms. This feature ensures that you or your loved ones can focus entirely on recovery in a comfortable environment, be it a deluxe room or a private suite, without dipping into savings.
Above all, it is important to prioritise your health over budget constraints.
A no room rent capping in a health insurance policy means that you can choose any hospital room you want during your treatment i.e. there is no maximum room rent limit.
You can pick any hospital room you want for treatment, or for the ICU (if needed) as long as your total claim amount is up to your sum insured.
Let’s understand this better with some context.
So, when one is admitted to the hospital for treatment, there is usually a range of hospital rooms available to choose from. Typically, most health insurers give you a limit up to which you can pick your hospital room and ICU room. For eg: There is a range of hospital rooms like a double room, deluxe rooms, luxury rooms, etc with a different room rent for each.
Pretty much like how hotel rooms work! Many health insurers give you a room rent cap in your policy, including a cap on ICU room rents.
Let’s make this simpler for you to understand with an illustrative example:
Suppose, due to certain reasons, you are being admitted to a hospital in a Zone B city like Bangalore for 4 days. You had basic health insurance of Rs 3 lakhs, and your health insurer includes a room rent cap of up to 1% of your SI, i.e. Rs 3,000/day.
Here is a comparison of how your room rent cap will work compared with a policy without a room rent cap:
| Different Scenarios | Digit Health Insurance with No Room Rent Cap | Other Insurance with Room Rent Capping |
| Sum Insured | ₹3 Lacs | ₹3 Lacs |
| Room Rent Cap | No Room Rent Cap | 1% of your sum insured, i.e. ₹3000 per day |
| No of Days Hospitalized | 4 | 4 |
| Room Rent for Private Ward (per day) | ₹5000 | ₹5000 |
| Total Room Rent Charged for 4 Days | 5000x4 = ₹20000 | 5000x4 = ₹20000 |
| Room Rent Limit for 4 Days | No Room Rent Cap | 1% of the sum insured 3000x4 = ₹12000 |
| Room Rent Paid by Insurer | ₹20000 | ₹12000 |
| You Pay | ₹0 🙂 | 20000-12000 = ₹8000 🙁 |
As you can see here, since your health insurer caps your room rent, you will be paying at least Rs 8,000 (extra amount due to room rent capping) more.
However, if your health insurance doesn’t come with any room rent capping, you will not need to pay this extra amount thus saving your pocket from additional out pocket expenses!
Did you know the hospital room you choose during your treatment can widely impact your hospitalization bill? Well, yes, and to avoid this, you can opt for no room rent capping in your health insurance policy.
Just like you can choose any hotel room while on vacation, you can choose any hospital room with this cover. Delux rooms, luxury rooms, even ICU rooms—everything is covered! Watch this video to understand the concept of no room rent capping.
Depending on your insurer, understanding room rent capping is crucial when choosing a health insurance plan. Room rent capping limits coverage for hospital room charges, and these limits can significantly impact your overall medical expenses.
Let’s explore these variations to help you pick a policy that meets your needs without surprises!
This is the most desired feature of a health insurance policy since it lets you choose the room of your choice without worrying about room costs.
This includes a co-payment clause and a cap on the room rent amount. This implies that the health insurance provider will pay only the amount covered by the policy. The remaining sum will be your co-payment as the policyholder.
In this case, the health insurance policy will outline the precise types of covered hospital rooms. You will be responsible for paying the full room rent if you choose a non-covered room.
Certain health insurance plans include a cap on the amount that can be spent on room rent. However, you can purchase an optional rider or add-on in health insurance that permits no room rent caps for an extra premium.
Room rent is a significant part of hospitalization costs, and having no capping on room rent in your health insurance policy can offer immense financial relief.
Wondering how? Here are some ways:
Here is an example to help you explain how no room rent capping makes a difference in your hospital bill:
Suppose Mr. Arpit’s policy has a room rent capping of INR 5,000/day, but he chooses a room costing INR 8,000/day. This means he has to pay INR 3,000/day out of his pocket. However, not only extra expenses, this will also reduce coverage for other hospital services proportionately.
However, the entire cost will be covered with no room rent capping.
The cost of hospital room rent varies according to the location and cost of living in the city:
Here are the average room rent costs for different rooms at hospitals in India, including ICU room rents:
Type of Hospital Room |
Zone A |
Zone B |
Zone C |
General Ward |
₹3000 |
₹1500 |
₹750 |
Semiprivate Ward (2 or more sharing) |
₹4000 |
₹2800 |
₹1800 |
Private Ward |
₹6000 |
₹5500 |
₹3500 |
ICU |
₹8800 |
₹8600 |
₹6800 |
Note - The above cost is for representation purposes only. It is the average cost of different types of hospital rooms. The actual price can vary on the basis of hospital room and city. Source
The primary benefit of no room rent capping in your health insurance is the fact that you’re not limited with your choice of room. Whether you don’t mind sharing the room with two other patients or want a private room, the choice is yours!
The primary benefit of no room rent capping in your health insurance is the fact that you’re not limited with your choice of room. Whether you don’t mind sharing the room with two other patients or want a private room, the choice is yours!
When you’re sick or being treated, comfort is what you’ll crave the most, isn’t it? Based on your personal preference, having no room rent cap helps you decide the room you feel most comfortable in, thereby making your stay at the hospital comfortable.
Generally, there are additional fees if room rent is exceeded. However, this is not an issue if there is no capping. You do not have to pay any unexpected out-of-pocket costs. This helps you safeguard your finances in times of need.
The claim procedure is frequently easier when there is no capping. Limits on room rent don't need to be calculated. During the claim procedure, this ease of use might be quite helpful. It means less worry and more attention to your health, which is what really counts.
Finally, this benefit frequently makes access to superior facilities possible. You can use these amenities without being capped. It goes beyond luxury. It concerns high-quality medical care.
Let’s take the example of Mr. Arpit again.
Suppose Mr. Arpit’s policy has a room rent capping of INR 5,000/day, but he chooses a room costing INR 8,000/day. This means he has to pay INR 3,000/day out of his pocket. However, not only extra expenses, this will also reduce coverage for other hospital services proportionately.
Using the principle of proportionate deduction in the example above:
Room Rent Allowed/Actual Room Rent x100 = 5000/8000 x 100 = 62.5%
This proportion will now be used to account for any costs mentioned in the final hospital bill. If your health insurance has a room rent cap, the insurer will only cover 62.5% of the entire bill.
Thus, capping on room rent affects not only the coverage but also the claim amount.
Please try one more time!
Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.
Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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