New Delhi, Feb. 25 -- The limit on room rent is a significant factor in a health insurance policy as exceeding it will increase your out-of-pocket expenses significantly.

If a policyholder opts for a room that is above the limit set in the policy, the insurer will apply a proportional deduction, affecting not only the room rent payout but also all other hospitalisation-related expenses such as doctor's fee and nursing charges, which are usually tied to the room category.

For instance, if the room rent limit is Rs.3000 per day and if the policyholder opts for a room with a rent of Rs.4000, then she/he exceeds the limit by 25%. This will result in the policyholder not just paying extra room rent but also will have to bear the additional 2...