LOSS OF LICENSE
Loss of Licence insurance is a form of combined personal accident and sickness insurance, which is designed to compensate a pilot or other crew member, for the loss of their licence, as a result of suffering an accident bodily injury or illness (which would be defined by your Insurer).
Essentially, loss of licence insurance provides financial assistance for the pilot or crew member, should they need to find an alternative career, in the event of their aviation career coming to an end.
Most policies for loss of licence insurance will require, as a prerequisite for payment, the cancellation or suspension of the licence by the responsible licensing authority. Individual pilots or crew members can purchase this coverage; however, it is usually provided by their employer. This would take the form of a group loss of licence scheme.
Wereck Insurance Brokers access to a number of Insurers would provide this form of insurance, who, in turn, have access to the services of expert medical personal. Your Insurers will rate the premium, taking into account the age of the insured person, their medical history and other factors. The maximum benefit payable will usually be a multiple of the insured person’s annual salary. Insurers will usually place different terms and conditions for each insured person depending upon such information.
Like the Personal Accident insurance, Insurers will provide you with a Schedule of Benefits, which includes the percentage of sum insured they would pay. A reduced benefit may be payable if illness is because of the insured person’s use of alcohol, drugs or narcotics (although Insurers may condition this upon the insured person’s enters an approved rehabilitation programme) or in respect of psychological or psychiatric disorder.
Your insurance policy will have a number of standard exclusions and conditions, it will also include a deductible or waiting period to elapse between the date of loss and the insured person’s entitlement to payment of the benefit under the policy. This period varies between 90and 180 days.
What is NOT Covered?
As with any insurance, there are limits and exclusions that apply. There may also be a deductible, excess or limits on this type of cover, so please check with your Wereck insurance broker first.
Following are major exclusions that may apply:
- Naval military or air force services
- Age limitations
- Professional or competitive sports
- War Risks
- Pregnancy or childbirth
- Suicide
- Aids/HIV
Please talk to us about what may or may not be appropriate for your coverage.
As Insurance is a complex subject, please talk to us now for professional advice and to make sure your level of coverage is appropriate, adequate, and sufficient to your requirements.
The List of Risks or the range of insurances available is not exhaustive, if there are any particular risks that are possibly unique to your type of business and/or for any specific or special requirements, please seek our assistance and guidance.