Defining Room Rent & ICU limits In Group Health Insurance

When buying a group health insurance policy, apart from the sum insured, there are other aspects too that an employer must consider. One of the important aspects to consider before making a purchase decision is to check the room rent & ICU limits in group health insurance. Both of these can increase your employee’s out-of-pocket expenses despite them being a part of your organization’s group health insurance policy.

Read more
Tailored health plans, dedicated expertise - the perfect match for your organization's well-being
Customized plans

Affordable prices

24X7 Support

Dedicated claims manager

Total Care

All round wellness benefits

Fast-track your search with instant quotes from prominent insurers
₹1 Lakh cover starting at
₹110/month/employee+
No medical test required
Zero waiting period
Paperless claims
secure-icon We don't spam
Get Updates on WhatsApp

Whom do you want to insure?

  • Employee, spouse & kids

  • Employee only

Wellness At Work

Benefits of group health insurance

Understanding Room Rent & ICU Limit in Group Health Insurance

As the term suggests, the limit on room rent and ICU is the capping or limit imposed on the coverage of the room occupied by the insured. When an employee gets admitted to the hospital, there are various categories of rooms for him to choose from at different rates. When the employer offers a group health insurance plan, it usually mentions the limit on room rent and ICU an employee can select in the hospital. The room rent & ICU limit in group health insurance is typically calculated as a percentage of the sum insured and are applicable on a per-day basis. The room rent & ICU limits are considered a sub-limit in insurance, that is, an extra limit imposed on a policy.

Let us consider the below example:

Akshay works for a company that offers group health insurance with a sub-limit on room rent and ICU limit. When Akshay got admitted to a hospital for four days, he decided to engage a room that costs Rs 5,000 per day. His group insurance provides him sum insured of Rs 3 lakhs. The room rent limit on this policy is applicable at 1%. Hence, the room rent limit is thus calculated as Rs 3,000 per day (3,00,000 x 1%) and Rs 12,000 for four days. Due to the room rent limit clause, the insurer is liable to pay up to the limit of Rs 12,000. The additional expenses on room rent (the difference of Rs 8,000) must be borne by Akshay.

Choosing the Right Room Rent & ICU Limits for a Group Health Insurance Policy

Selecting an adequate room rent and ICU limit under a group insurance plan is vital as it determines the deduction for other costs incurred during hospitalization. An inadequate room rent limit is one of the major reasons for claims getting settled at a lower amount. There are primarily two factors that need to be considered while choosing the right limits.

Room rents of the network of hospitals chosen

The employer must know the average room rent in the network of hospitals chosen. The type of hospital, whether Tier 1 or Tier 2 will attract different room rents. Similarly, the locality or the area of the hospital also matters to identify the room rent. The employer should then select the appropriate limit.

Sum insured of the insurance policy

As mentioned in the example above, the sum insured plays a significant role in calculating room rent limits. For instance, Rs 3,00,000 sum insured with a 1% limit will have a daily room rent limit of Rs 3,000 and a Rs 5,00,000 sum insured at the same rate will attract a room rent limit of Rs 5,000.

Hence, the employer must consider these two factors before selecting a room rent limit. Additionally, there is an option of choosing a no-capping room rent in group health insurance.

Key reasons to prioritize Group Health Insurance
  • Critical Job Factor

    According to a report by Society for Human Resource Management (SHRM), 60% of employees consider health insurance essential when choosing a job.

  • Boost Productivity

    According to World Health organisation (WHO), poor health can cause a 20-25% drop in productivity.

  • Tax Benefits

    Employer-paid health insurance premiums are tax-deductible under Section 80D .Not offering this can mean missing out on tax savings.

  • Regulatory Compliance

    The Indian government has introduced regulations like Social Security Code, 2020 the which mandates health insurance for certain sectors. Non-compliance can lead to penalties.

Ensure you're covering all bases with group health insurance to attract top talent, improve productivity, and stay compliant!

Conclusion

Buying a group insurance plan with comprehensive coverage is the key so your employees are never underinsured. Hence, as an employer, you should always choose a plan with either no limit on room rent or a higher room rent limit. Also, in any of the cases, the insured (employee) should be made well aware of the limitations in advance to avoid any disappointments.

 

calcu-img

Group Health Insurance Premium Calculator

Who do you want to insure?

  • Employees
  • Employees & their family
icon

Minimum lives should be 7

  • 1 Lakh
  • 2 Lakh
  • 3 Lakh
  • 4 Lakh
  • 5 Lakh

Include maternity coverage

Premium starts from

(Excluding GST)

Let's find the right plan for you

Speak to our experts to get the right plan for your company's needs

icon Expert advice made easy icon
  • Date
  • Time

When do you want a call back?

  • Today
  • Tomorrow
  • 13 Dec
  • 14 Dec
  • 15 Dec
  • 16 Dec
  • 17 Dec

What will be the suitable time?

  • 11:00am - 12:00pm
  • 12:00pm - 01:00pm
  • 01:00pm - 02:00pm
  • 02:00pm - 03:00pm
  • 03:00pm - 04:00pm
  • 04:00pm - 05:00pm
  • 05:00pm - 06:00pm

Tell us the number you want us to call on

Your privacy matters. We won't spam you

Call scheduled successfully!

Our experts will reach out to you on 4th June between 2:00 PM - 3:00 PM

Wellness At Work

Benefits of group health insurance

Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Now help your friend get Business Insurance

Your referral is greatly appreciated!

Our team will reach out to your friend soon to help with their business insurance requirements.

Unlock free PDF with One last step!

File Download Successfully!

Resolve your doubts about insurance.

Our certified business insurance experts are just a call away.

icon Expert advice made easy icon
  • Date
  • Time

When do you want a call back?

  • Today
  • Tomorrow
  • 13 Dec
  • 14 Dec
  • 15 Dec
  • 16 Dec
  • 17 Dec

What will be the suitable time?

  • 11:00am - 12:00pm
  • 12:00pm - 01:00pm
  • 01:00pm - 02:00pm
  • 02:00pm - 03:00pm
  • 03:00pm - 04:00pm
  • 04:00pm - 05:00pm
  • 05:00pm - 06:00pm

Call scheduled successfully!

Our experts will reach out to you on 4th June between 2:00 PM - 3:00 PM

Call scheduled successfully

Thank you
Our experts will provide you assistance with your
insurance coverage. Be assured, all your questions
will be answered

Customizable plans from top insurers

starting @ ₹110/employee*

View Quotes
Group Health Insurance Articles
GIPSA stands for General Insurance Public Sector Association.It is a group of four General insurance companies...Read more
28 Apr 2022 by Policybazaar 19533 Views
Under Section 37(1) of the Income Tax Act, 1961, an organization can apply for tax exemption on the premiums paid...Read more
29 Nov 2022 by Policybazaar 11246 Views
The employer-employee insurance scheme is a valuable benefit for businesses, providing financial support to...Read more
05 Oct 2020 by Policybazaar 24032 Views
GPA (Group Personal Accident) and GMC (Group Medical Coverage) are two popular types of insurance policies often...Read more
01 Jun 2023 by Policybazaar 10711 Views
Extended work hours or working on holidays and weekends have become common in workplaces. Compensatory leave for...Read more
18 Apr 2024 by Policybazaar 3049 Views
In today’s fast-paced world, the conversation around mental...Read more
20 Nov 2024 by Policybazaar 82 Views
Postpartum depression is a serious mental health condition...Read more
05 Nov 2024 by Policybazaar 129 Views
In India, mental health issues are on the rise, with studies...Read more
18 Oct 2024 by Policybazaar 169 Views
Mental health issues have become a pressing concern worldwide...Read more
18 Oct 2024 by Policybazaar 130 Views
Startups and tech firms, once symbols of growth, now face...Read more
10 Oct 2024 by Policybazaar 234 Views
Policybazaar for Business - Group Health Insurance - Customer Reviews
View all
4.4/5
Based on 189 reviews
4.4
out of 5
Based on 189 reviews
38 users
136 users
15 users
0 users
0 users
3.8 April 09, 2023
Mansi
Excellent Support
It was easy to buy insurance from PolicyBazaar website and customer support was also amazing to clear all the doubts.Thankyou. Highly worth it.
Dehradun
4.3 April 01, 2023
Mahesh
Necessary Investment
It is a good and necessary investment. Thanks PB.
Lucknow
4.3 March 24, 2023
Surya
Provides Satisfactory Results
I purchased Group health insurance at policybazaar recently and i am so much satisfied with the plan. The application process was smooth and efficient, making the typically tedious task of getting insurance surprisingly hassle-free.Thanks PB.
Bareilly
3.8 March 16, 2023
Naveen
Helpful In Making Decisions
When it came to selcting the right Group Health Insurance, Policybazaar offered an impressive range of options from reputable insurers. I appreciated the comprehensive details avalable for each policy which helped me to take the better decisions. Thankyou.
Delhi
4.3 March 15, 2023
Rajesh
Increases Clients Expectations
I recently had the pleasure of securing a Group Health Insurance policy throug PolicyBazaar and I must say the Entire process exceeded my expectations! From start to finish, their service werw great. Thankyou.
Delhi
3.8 March 02, 2023
Ravi
Great Experience
I got great deals on PolicyBazaar website. Highly recommend.
Pune
4.3 February 17, 2023
Diljeet
Excellent Purchase
It was a excellent purchase at PolicyBazaaar. Thankyou team.
Coimbatore
4.3 February 04, 2023
Satya
Prompt Services
Policybazaar's efficient claims process was impressive. In case of any medical emergencies, my employees were able to get their claims settled swiftly, allowing them to focus on their health and recovery without worrying about financial aspects.Thankyou
Chennai
4.3 January 22, 2023
Abhishek
Budget Friendly Purchase
Thankyou PolicyBazaar for providing such a great plan at affordable premium rates. It was a budget-freindly purchase.
Delhi
4.3 January 09, 2023
Abhash
Multiple Range Of Benefits
I purchased Group health Insurance which offered me plans with affordable rates Thankyou PB.
Pune