The new Policybazaar Tabby partnership allows UAE residents to split car and health insurance premiums into interest-free instalments, making essential insurance more affordable and easier to manage.
DUBAI: Paying for annual insurance premiums in one lump sum has long been a challenge for many households in the UAE. The new Policybazaar Tabby partnership aims to change that by introducing flexible payment options that allow customers to spread the cost of car and health insurance without paying extra fees.
The strategic collaboration brings together Policybazaar.ae, one of the UAE’s largest insurance marketplaces, and Tabby, a leading financial services app in the Middle East. The service is now live on Policybazaar.ae and enables eligible customers to divide their insurance premiums into four equal monthly payments with zero interest and zero processing fees.
The payment experience is supported by Tap Payments, which provides the checkout infrastructure. Customers selecting their preferred insurance policy can choose Tabby during payment, creating a secure and straightforward purchasing experience while offering greater financial flexibility.
How does the new payment option work?
Instead of paying an annual insurance premium upfront, customers can spread the cost across four monthly instalments without any additional charges. Those who prefer longer repayment periods can also choose payment plans extending to six, eight or twelve months, depending on eligibility.
The initiative is designed to remove one of the biggest barriers to purchasing comprehensive insurance. While motor and health insurance remain essential financial protections, paying the entire premium in advance can place pressure on household budgets. Flexible payment options allow customers to choose policies based on their coverage needs rather than immediate cash flow.
According to Policybazaar.ae, customer research consistently showed that upfront annual premiums remain one of the primary reasons consumers delay or reduce insurance coverage. By embedding flexible payments directly into the purchase journey, the company hopes more residents will choose policies that offer better protection.
Toshita Chauhan, Chief Business Officer at Policybazaar.ae, said insurance decisions should not be driven by short-term financial constraints. She explained that many customers wanted broader coverage but often settled for lower levels of protection because paying the full annual premium at once was difficult. The company believes removing the upfront financial hurdle gives customers greater freedom to select insurance that best meets their needs.
Tabby says the partnership reflects changing consumer behaviour across the region, where households increasingly use flexible payment solutions to manage both everyday spending and essential expenses.
Zain Khan, Senior Director of Business Development at Tabby, said many families already rely on flexible payment options for various purchases. Extending that convenience to insurance gives customers another practical way to manage necessary expenses without compromising on the level of cover they require.
The Policybazaar Tabby partnership also highlights the growing role of embedded financial technology within the UAE’s digital economy. By integrating flexible payment solutions directly into online services, businesses can simplify purchasing while improving accessibility for consumers.
As living costs continue to influence household budgets, interest-free instalment options are becoming increasingly attractive for essential services. For UAE residents purchasing motor or health insurance, the collaboration offers a practical alternative to large upfront payments while maintaining full insurance protection from the start of the policy.
