I want to get a health insurance policy with a sum insured of Rs 5 lakhs. I am evaluating 2 policies
The premium in the case of room rent limit is lower by about Rs 1000. How will the room rent cover affect my policy claims?
Lets consider this extract from the policy document of health insurance policy issued by New India Assurance.
The document talks of "proportionate deduction". This is best explained with an example:
If the sum insured is Rs 5 lakhs and if the room rent limit is 1% of sum insured then it means the room rent limit is Rs 5,000 per day. If you happen to be hospitalized at a room rent of Rs 10,000 per day then it means your room rent limit is 50% of your actual rent. In such a scenario:
So if you had a claim of Rs 5 lakhs, which included medicines worth Rs 50,000. Then the claim settled by the insurance company will be:
So the total claim amount will only be Rs 2.75 lakhs.
Sachin Shah is a 30 year old Senior Software Engineer, working at an IT services company in Bengaluru. He and his wife want to plan for their retirement and also want to save for their child's education, wedding and for buying a car.View Case Study