Cash before cover simply means that insurance companies will not guarantee insurance cover until and unless the insured has paid premiums that are due.

This is applicable whether it is at policy inception or renewal.

An insurance contract is premised on the principle that if you have not paid your insurance premiums, you cannot expect the insurance company to cover you.

Insurance premiums are due in advance because they provide coverage immediately upon the effective date and continue to provide coverage every minute the policy is valid.

If you fail to pay your premiums on a short-term insurance policy, you cannot expect the insurer to cover you if you lodge a claim.

If no premium is paid in advance, there is simply no cover. In fact, if premium instalments are missed, then the insured no longer has a binding insurance contract with the insurer.

Non-payment or a missed payment is regarded as a cancellation of the policy by the insured.

Therefore, given that the unforeseen event can materialise anytime, it is recommended that as a policyholder you pay your premium to renew the policy before expiry.

Depending on the mode of payment, once you have paid, you should immediately bring this to the attention of the insurer so that it can be recorded.

Short-term insurance is insurance that you take out on your possessions such as your household property, car, cell phones, laptops, business property and other assets against loss due to events such as fire, burglary or damage.

You can also buy short-term insurance to cover your health or disability, events, as well as a legal liability to others.


This article was written by the Insurance Council of Zimbabwe (ICZ) but there were additions by IPEC.

ICZ is an association of short-term insurance and reinsurance operators who are registered and duly licenced by the Insurance and Pensions Commission (IPEC). For a full list of all ICZ members please visit: