Loss of Licence Insurance and Reinsurance

Loss of Licence Insurance for Individuals and Groups

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. FEIC can offer both individual loss of licence and group loss of licence cover so please make an enquiry.

FEIC have 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 90 and 180 days.