Aviation Insurance - Loss of licence cover

1. Loss of Licence Cover

2. Loss of Licence cover provides benefit to the aircrew
following permanent loss or temporary suspension of
aircrew licence. These events can follow personal injury
caused by an accident or arise from illness.

3. 1. The cover is bought by pilots and co-pilots, flight engineers and
air traffic controllers. Cover is many a times purchased by the
employer aircraft operator or association of aircrew for the group of
employees or members as a whole.
2. Benefit is linked to age and annual salary of the beneficiary. Age
indicates the likely future earning capacity of the beneficiary and
thus multiple applied to annual income decreases as the age
increases. Cover is many times restricted by the underwriters for
beneficiaries falling in the age group of 55 and above to physical
injury since they are likely to have more incidence of illness and
thus premium could be quite prohibitive.
3. The benefits against temporary suspension of licence usually start
after the waiting period which usually ranges from 90-180 days.
Benefit is usually 2% per month of sum assured for a maximum
period of 12 months. In case temporary suspension gets converted
into permanent withdrawal of licence, amount earlier paid as
benefit is adjusted.

4. Exclusions could account for pre-existing health conditions. Other
exclusions are
› Death
› AIDS
› Illness that does not manifest during the policy period
› Intentional self-Injury
› Attempted suicide
› Assault provoked by the insured
› Intentional exposure to danger
› Abnormal flying hazards
› Armed forces
› Loss of licence for reasons other than as covered by the policy and
war and other perils