Simply put, Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for a payment in monetary terms.

An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.

The company or person who buys insurance is called an insured.

The monetary consideration paid by the insured to the insurer is called a premium. It can be paid once off, monthly, annually depending on the agreement between the insurer and the insurer.

Insurance can be subdivided into two main categories, short-term insurance (provides cover for your belongings, such as your house and car including liabilities that may arise from the ownership/use of these) and long-term insurance pays out when you or your loved one dies or falls sick). A short-term insurance policy offers the insured indemnity. Indemnity is to put the insured back in the same financial position after loss or damage occurred in that the insured was immediately before such loss or damage occurred. Long-term insurance will not restore you to the position you were in prior to a loss (for example the insurer cannot resurrect your deceased beloved) but will pay out a “sorry for what happened” amount of money. This thereby means that each type of cover sought can be easily categorized. The following are some examples of what is insurable where.


  • Vehicle
  • House/Building
  • Household Contents
  • Portable Goods / All Risk Items, for example, cell phones, jewellery, laptops
  • Personal and Public Legal liability
  • Commercial/Business Insurance


  • Life Assurance
  • Medical Aid
  • Funeral Assurance
  • Investments
  • Pension/Retirement Schemes

For a quote, contact us on +27 11 395 1631 or email us at nick@ayobainsurance.co.za / natalie@ayobainsurance.co.za

Alternatively, you can follow the link https://ayobainsurance.co.za/detailed-quote/

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