Room Rent Limit – Why and how it is important

The limit imposed on the coverage of boarding expenses or room rent, along with nursing fees of the hospital is called room rent limit in health insurance.

The limit imposed on the coverage of boarding expenses or room rent, along with nursing fees of the hospital is called room rent limit in health insurance. The limit is expressed as an absolute amount or as a percentage of Sum Insured or by the category of room. For instance,

  • If the allowed room rent limit in your health plan is ₹5,000, your plan would cover your boarding expenses up to ₹5,000.
  • If the limit is expressed as 2% of the Sum Insured and the chosen Sum Insured is ₹5 Lakhs, your plan would cover your boarding expenses up to ₹10,000.
  • If the limit is expressed by the category of room as Single Private room, then your highest eligible category is Single Private Room.

Suppose you choose a room rent that exceeds the limit, then all the other charges related to the treatment will be settled by the Insurance company on the same proportion. For example, if your room rent limit is 3000 and you opt for a room rent of 4000, then if your overall claim is 1,00,000, the insurance company will pay only 75,000 considering the ratio in with the room rent limit was exceeded. This is called the proportionate deduction under the terms and conditions of the policy.

Why you need an Insurance Broker..

Insurance Broking Companies represent the customers, understands their requirements and offer them choices..they also provide effective claim support.

Insurance Broking Companies play an important role in helping the customer to understand and identify actual needs to make an informed choice. Insurance Agents or Agencies including banks usually represent one or two Insurance companies in selling Insurance Policies, where the choices available to the customer are limited.

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Compare and Save

It is always important to compare the premiums of various insurance companies against benefits offered before buying an insurance policy

Why should you compare insurance policies before buying…

The Premium rates of different insurance companies will vary for the same vehicle and such premiums offered by companies could vary with time.

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Domiciliary Hospitalisation

Domiciliary Hospitalisation is the treatment of the patient taken at home due to the lack of accommodation in the hospital/nursing home or the patient’s condition being such that he/she cannot be moved to the hospital. This needs to be as per the doctor’s recommendation with all the required hospital/treatment facilities. Most health insurance companies do cover domiciliary hospitalisation subject to a certain limit depending on the sum insured.

Exclusions under a Policy

These are conditions or diseases or risks for which an insurance Claim is not allowed, and the insured will not be given any benefit. As per Policy terms such conditions will be excluded from the insurance coverage. Exclusions can be of two types – Permanent & exclusions with waiting period. Permanent exclusions are never covered.

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