Short-term insurance in South Africa is a non-renewable, temporary and inexpensive basis of coverage that protects against risks in fixed assets. It acts as gatekeeper against any perils where it concerns a South African-resident. It can thus be concluded that short-term insurance must be intended as interim coverage against the mentioned risk.

Short-term insurance is well liked amongst people facing a huge lifestyle change. School-leavers losing their dependant status, college graduates and people on strike, businessmen between jobs and people who retire early are all eligible for short-term insurance. The point is that short-term insurance is only an option when it is used as temporary cover against unforeseen risks, not as a permanent safety net.

The main attraction for short-term insurance is the low premiums one has to pay. On the rear side, the deductible paid when claiming from short-term insurance can be very high. The money coming from your pocket can add up to a hideous sum. Short-term insurance is only available for a short period of time, say 6 months. When that period is over, it is not possible to renew the policy.

How to choose the right policy for your needs, even if it is only for a short period of time, is always a problem. A good place to start is at the department of insurance or the insurance board. They can provide you with an overview of your prospective insurance company's financial status. Also check the department of insurance to find out if any consumer complaints have been charged against them. The short-term Ombudsman handles queries within this regard. He is an independent person and generally tries to persuade the insurer to admit a claim. If he does not succeed in this, he can give a legal ruling that obliges the insurer to pay the claim. The Ombudsman's decision is final and no appeal can be made against his verdict.