Policybazaar freezes UAE health insurance costs for up to 5 years
The feature is positioned as the UAE’s first product of its kind, aiming to protect policyholders from annual price volatility driven by medical inflation
03 June, 2026
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Policybazaar.ae has unveiled a new health insurance add-on, Health Insurance Premium Lock, designed to freeze customers’ premiums at the rate they sign up for and hold them steady for up to five consecutive years.
The feature is positioned as the UAE’s first product of its kind, aiming to protect policyholders from annual price volatility driven by medical inflation and age-based pricing adjustments.
The add-on is available exclusively on selected health insurance plans through Policybazaar.ae and is currently live for residents across Dubai and the Northern Emirates.
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Under the offering, customers who opt in will pay a slightly higher upfront premium in exchange for price stability over a five-year term. During this period, the insured premium remains fixed regardless of age progression, market conditions, or general healthcare cost inflation.
Tackling a long-standing frustration in UAE health insurance
Health insurance premiums in the UAE have steadily risen over the years, often driven by medical cost inflation estimated at 5–10 per cent annually. Another key factor affecting policyholders is “age-band loading,” where premiums can increase sharply, sometimes by 20–25 per cent, once a customer crosses certain age thresholds.
These combined pressures have made renewals a point of frustration for many residents, who often face unexpected cost increases even when they have not made claims.
According to internal data from Policybazaar.ae, nearly 40 per cent of customers who experienced a premium hike at renewal had no pre-existing conditions and had not filed a single claim during their policy period. Despite maintaining healthy profiles and responsible usage patterns, they still faced higher premiums simply due to age progression.
The platform says this disconnect has been a key driver of dissatisfaction and policy lapses, and is the central problem the new Premium Lock feature is designed to address.
How the premium lock works
The Premium Lock add-on is structured as a costed option layered on top of standard health insurance plans. Customers pay a modest additional fee at the time of purchase in return for fixed pricing over a five-year horizon.
Once activated, the premium amount remains unchanged for the duration of the lock period. This shields policyholders from both annual medical inflation and renewal-time increases that typically accompany age progression or market repricing.
Policybazaar.ae has described the mechanism as a way to “flatten the renewal curve,” offering households greater predictability in managing long-term healthcare expenses.
The company has also emphasised that the savings potential increases over time, as customers effectively avoid compounding annual increases that would otherwise accumulate over multiple renewal cycles.
Positioned as a UAE-first innovation
The company is framing Premium Lock as a product made possible by the UAE’s evolving insurance ecosystem, which has increasingly encouraged digital distribution and customer-centric product design.
Policybazaar.ae said the launch reflects the country’s broader push toward financial innovation and improved consumer protection standards within the insurance sector.
In its statement, the company highlighted that the product is currently exclusive to its platform and is not available through any other insurer or aggregator in the UAE market.
Executives say product addresses renewal uncertainty in market
Speaking on the launch, Neeraj Gupta, CEO of Policybazaar.ae, said the initiative was driven by customer sentiment around renewal uncertainty.
“Renewal season should not be a moment of anxiety, it should be a formality,” Gupta said. “What we heard from our customers, year after year, was that the moment their renewal landed, the trust they had built with their insurer took a hit. Health Insurance Premium Lock changes that dynamic entirely. The price you see when you first sign up, that is the price you carry forward. We built this because our customers deserved it, and we are proud that only Policybazaar.ae is offering this.”
Toshita Chauhan, chief business officer at Policybazaar.ae, added that transparency and predictability were central to the product’s design.
“The most common thing we heard at renewal was ‘nobody told me it would go up,’” Chauhan said. “That single sentence shaped everything about how we designed Health Insurance Premium Lock. The moment you buy it, whatever your age, whatever your plan, that premium is yours to keep for five years. The savings compound meaningfully over the lock period, but beyond the numbers, what we are really giving people is something far more valuable, the certainty that their biggest household decisions will not be quietly undone at renewal.”
Eligibility and availability
Health Insurance Premium Lock is available to adult policyholders up to the age of 60, provided they have no declared pre-existing medical conditions at the time of purchase. The add-on can be selected during checkout and is integrated directly into eligible health insurance plans on Policybazaar.ae.
The company has confirmed that the feature is designed to be simple and fully digital, requiring no separate underwriting process beyond standard eligibility checks.
At present, the product is available only through Policybazaar.ae, which continues to position itself as a digital-first insurance marketplace focused on simplifying access and improving transparency for UAE residents.
A shift toward pricing certainty
For years, health insurance costs in the UAE have trended upward in a largely one-directional pattern, leaving policyholders with limited ability to predict long-term expenses. Policybazaar.ae says Premium Lock is intended to break that pattern by introducing a structured period of price stability.
The company argues that greater certainty in healthcare spending will help households plan more effectively, particularly in a market where insurance is mandatory for most residents and renewal cycles are unavoidable.
By fixing premiums for up to five years, the product effectively transfers risk away from the customer and toward the insurer-aggregator ecosystem, marking a notable shift in how health insurance affordability is framed in the region.
Policybazaar.ae says the launch is part of its broader effort to reshape insurance from a reactive purchase into a more predictable financial product.






















