When ‘No Room Rent Limit’ Isn’t Enough: Policyholder’s Hospital Experience Sparks Debate

Health insurance is supposed to provide relief during emergencies, but hidden clauses often leave patients and their families vulnerable at the time of need. One of the most common, and least understood, is the issue that comes with room rent limits.

The clause doesn’t just decide which hospital room you are entitled to during hospitalisation, it can also shrink the insurer’s payout across the entire bill, leaving policyholders with unexpected expenses.

Prem Soni, a NISM-certified research analyst, recently highlighted this by sharing the hospitalisation experience of his son on social media platform X (formerly Twitter). Despite holding a Rs 1.20 crore “Platinum” health plan with no room rent cap, he was denied a suite room for his son at the hospital when he sought cashless admission.

Initially, staff confirmed the room was available. But once he mentioned the claim would go through his insurer, Acko, they said the suite was “not possible” because there was no memorandum of understanding (MoU) between the hospital and insurer for that category.

Ironically, Soni says, if he had paid from his own pocket, the suite would have been given to him.

“This is not why I bought health insurance,” he wrote. He also expressed his frustration due to the lack of support when his infant son was admitted. The insurer later apologised, blaming a misunderstanding with the hospital, and offered to arrange the room. But by then, shifting was no longer feasible, he said.

Why Does Room Rent Limit Matter

Soni’s experience shows how room rent-related caps and any associated deductions can complicate your claim approvals.

A policyholder may, at first, assume that exceeding the cap on rent would only mean paying out of pocket for the room charges. In reality, it can have a domino effect on other expenses as well, such as doctor fees, nursing charges, surgery costs, and diagnostics. Most of these medical procedures and treatments are all tied to the room category and are reduced proportionately.

Say for instance, if your policy allows a Rs 10,000 per-day room but you opt for one costing Rs 14,000 (40 per cent higher), the insurer may cut down most charges by 40 per cent.

Even if your bill stays within the sum insured, you will shoulder a larger part out-of-pocket.

Not Just About High-Cover Plans

Large covers, up of Rs 20 lakh to Rs 1 crore and more, don’t shield patients from this either. If the plan has a rent cap, or unclear wording like “single private room,” the actual entitlement depends on how the hospital interprets it. A “single room” could mean the most basic option, not necessarily a deluxe category.

Policies differ in approach too. Some set fixed rent caps, others peg it to the sum insured, while high-end plans promise “no rent limits.” Yet, as Soni’s case shows, even the latter can run into insurer–hospital MoU disputes, putting patients in a bind.

What Should Policyholders Do

Before choosing a policy, check:

• Whether there is a room rent cap or proportional deduction clause.

• If “single room” means a standard private room or covers higher categories.

• Whether hospitals on the network have restrictions on certain room types under cashless treatment.

You can also confirm with the hospital what type of rooms your policy covers at the time of admission.

Soni’s experience highlights that policyholders often end up paying the price when hospitals and insurers clash over paperwork and terms.

In health insurance, what matters is not just the sum insured, but the fine print, especially the clause that decides key facilities like the room you will be allotted and how much you will eventually pay out of your own pocket.