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.