Can I have no room rent capping under my health insurance plan?


6 min read

Updated on Apr 28, 2023

If your health insurance offers the feature of No capping on Room Rent, it means that you can select any hospital room as per your choice without any room charge limit. Let us understand the no room rent capping meaning in detail, in this post.  

A health insurance without room rent capping allows the policyholder to avail a hospital room of their choice when getting treatment. This is possible if the total claim amount of your hospital bill does not go beyond the sum assured of the policy. This feature will allow you to select your preferred room that you stay in during your treatment in a hospital as well as in the ICU.

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No Room Rent Capping Meaning in Health Insurance

Capping on room rent means the maximum sum of money that an insurance company offers to the insured for hospital room charges in the event of hospitalization of the insured.

It is very important to check the room rent capping allowed in your health insurance to know the maximum amount that an insured has to pay for his/her room during hospitalization. Every health insurance policy mentions the capping on room rent in the policy document, which a policyholder must check while buying the policy. If your room charges goes beyond the limit offered under the health plan, you will have to pay the extra from your pocket.

Hence, it is always better to go for policies that offer No Room Rent Capping in Health Insurance.  No Room Rent Capping in health insurance means that the insured can choose a hospital room while undergoing treatment without any restriction on the room charges. Thus, the policyholders can choose any room as per their choice during hospitalization.

Know More: What is Room Rent Capping Under Health Insurance Policy?

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5 Types of Room Rent Capping in India

When we talk about room rent capping, the policies and terms of each insurance plan might vary. Hence, it is important to check the policy papers with details of all applicable policies. Further, you must also have the understanding of the various types of capping on room rent under health insurance to buy a policy suiting your need:

1. No Capping on Room Rent

There are some health insurance companies who offer health insurance with No Capping on Room Rent. So, under these plans there is no maximum limit on room rent being levied by the insurer. As per this category, the insured is allowed to select the hospital room that fulfills his/her requirement closely.

2. Room Rent with Co-Payment

Co-pay means that the insurance provider and the insured share the treatment cost including the room rent. So, here the policyholder as well as the insurer are together responsible to pay the charges to the hospital. Hence, the claim amount is shared as per the terms of co-pay.

3. Room Rent With a Cap

In this case the charges of room rent claimed by a policyholder is capped  frequently by the insurer. And in case the charges go beyond the capped limit, the insured is required to pay the extra amount.

4. Room Rent in case of Some Room Types

In this type of room rent capping, the insurer allow the insured to choose the rent of the hospital room as per the need of the insured and availability of the rooms. If the room rent amount is limited, you may choose a room that is within your budget and doesn’t exceed the capped amount. Else, you may have to pay the added cost on your own.

5. Add-On Cover on Room Rent Waiver

By paying an extra nominal charge, the policyholder can avail an added option of room rent waiver along with their comprehensive health plan at the time of buying the plan. This add-on will help in removing the room rent ceiling.

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3 Advantages of Not Capping Room Rent in your Health Insurance

The benefits of availing a health policy that doesn’t cap the room rent charges is very important. Some of the benefits are mentioned below:

1. Liberty to avail a hospital room as per your needs

This is the most important benefit of buying a policy of health insurance with no room rent capping. So, if your policy doesn’t restrict your hospital room charges, you can choose to stay in the room as per your need and choice. So, whatever distinct requirement you have, you can choose the hospital room as per that need if your health plan allows No Capping on Room Rent.

2. Liberty to use coverage benefits as per requirement

An insurance provider will fulfill all such expenses as long as they comply by the terms and conditions of the policy. So, depending on your health policy conditions, you have to choose whether to opt for a modest hospital or to go for an opulent one. Accordingly, you must decide whether to break the sum insured or not. However, you must keep in mind that the maximum bill amount on your treatment shouldn’t go beyond the sum insured amount of your policy. This is because the insurer will pay the claim amount up to the sum insured.

3. Liberty to have a comfortable hospital stay

Depending on the requirement of single room or twin sharing room etc., the insured can choose to pick the room of their choice while getting treatment in a hospital for an ailment. And to make things easy and comfortable, it is better to buy a comprehensive health insurance policy without any capping on hospital room rent.

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To Conclude

Room rent capping was done to have a ceiling on the upper limit of the room charges in a hospital while getting treatment. Thus, it is important to check the room rent capping health insurance while buying a plan. So, if you are looking for a health insurance plan, make sure to check the capping on room rent.

There are a number of health insurance plans these days that do not have any restrictions on room rent. This makes it easy for the policyholder to get the hospital treatment done while staying in a room that they want.

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FAQs: No Room Rent Capping Under Health Insurance Plan in India?

What do you mean by no cap on room rent in health insurance?

The clause of 'no room rent capping' in health insurance signifies that the insured can choose a hospital room while undergoing treatment without any restriction on the room rent. Thus, the policyholder can choose any room of a hospital as per his/her wish during hospitalization. However, the condition is that the amount claimed by the insured should not exceed the sum assured of your policy. 

Does a health insurance plan offer coverage of hospital room charges?

Yes, most health plans allow coverage on room rent, which means that the insurance company settles the room rent charges under the health insurance claim. 

Why is room rent important in health insurance?

Room rent limit is the restriction imposed on the room charges while choosing a hospital room during your treatment.  So, this is the maximum sum that your insurer will pay for your room per day during your hospital stay under your health insurance. This feature or the charges of room per day depends on the limit imposed by your health insurer on room rent under the policy. Hence, it is important.  

How is room rent calculated for health insurance?

To calculate the room rent under a health insurance you must check that the room rent offered is 1% or more of the sum insured. For instance, if your sum insured of the health plan is INR 5 lakh, it is better to select a room in the hospital with rent equal to 1% of SI, which is INR 5,000 per day.

What is no room rent capping in health insurance?

No Room Rent Capping in health insurance means that the insured can choose a hospital room while undergoing treatment without any restriction on the room charges. Thus, the policyholder can choose any room of a hospital as per his/her choice to stay in during hospitalization. However, you must note that the amount claimed as the total bill of the hospitalization by the insured should not exceed the sum assured of their policy.

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Feb 13, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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