VIPA 2011 Loss of Licence Insurance Policy

Insured through Lloyds Insurance Underwriters the VIPA Loss of Licence insurance policy has been put in place to protect our members against the potentially devastating financial consequences that can result from a suspension or cancellation of a pilot's licence due to injury or illness.

The key elements of your LOL cover include:

  • No Health Exclusions
  • Automatic Cover with all pre-existing medical conditions covered
  • A straight forward and easy to understand policy
  • Unprecedented levels of insurance cover for VIPA members

Details of the Cover

Your VIPA Loss of Licence insurance policy covers you for two events, temporary loss of licence, and permanent loss of licence.

Temporary Loss of Licence

If you temporarily lose your licence due to injury or illness, you will receive (subject to the terms and conditions in the product disclosure statement) an insurance payment of 85% of your salary after a 90 day waiting period. This will be paid for up to 2 years, or until you return to work, whichever occurs first.

Permanent Loss of Licence

If you permanently lose your licence due to injury or illness, you will receive (subject to the terms and conditions in the product disclosure statement) the temporary loss of licence benefit outlined above for the first two years, then a lump sum payment equal to 3 times 85% of your salary.

All VIPA LOL members are in fact covered for 85% of their salary, up to a salary of $195,529 - so if your salary increases, your LOL cover also increases - automatically!

Below is a payment summary based on a 737 Captain earning $184,791.

AgeVIPA PolicyVirgin PolicyMBF(AFAP) Policy
30$785,362$500,000$550,000
35$785,362$500,000$550,000
40$785,362$500,000$550,000
45$785,362$500,000$550,000
50$785,362$358,000$495,000
55$785,362$358,000$440,000
55$785,362$358,000$330,000

The above calculations are taken from the product disclosure statements of each of the major LOL policies. They make certain assumptions and you should evaluate each policy for your own particular situation.

Exclusions and Terms and Conditions

Existing LOL policies available to pilots have exclusions on insurance payouts for some of the most common causes for people making a claim. They exclude or severely limit payments where a pilot is unable to fly as a result of degenerative diseases, mental illness, injuries relating to alcohol use and a whole raft of other conditions. You should check each product disclosure statement for exclusions.

The VIPA LOL policy has dramatically reduced those exclusions, to provide you with a policy to provide genuine protection against a suspension or cancellation of your licence.

No Application Form

If you are under the age of 60 (or over the age of 60 and already insured under the VIPA policy), there is no application form to complete in order to join the 2011 VIPA LOL policy. In addition to this, under the standard policy any pre-existing medical conditions you may have are automatically covered. NO OTHER LOL INSURANCE POLICY PROVIDES YOU WITH THESE ADVANTAGES.

Alternative insurers have an application process that includes up to 40 medical questions. It is also common for pre-existing conditions you have to be excluded from your cover meaning you are not entitled to insurance cover should any of those pre-existing conditions prevent you from flying.

Under the standard VIPA LOL policy there are NO HEALTH EXCLUSIONS and ALL PRE-EXISTING CONDITIONS ARE COVERED.