Frequently Asked Questions
The following questions are regularly raised by new clients:
As a pilot what options do I have to protect my income in the event that I am long term sick or have suffered an accident and I am unable to carry out my normal occupation?
The traditional form of insurance for professional Air Crew is a Loss of Licence (LOL) scheme. There is now an alternative to LOL which is Pilot Income Protection (PIP) which provides you with a monthly income for a set period (normally 5 years).
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What is the difference between Loss of Licence & Income Protection insurance?
A Loss of Licence scheme pays a lump sum benefit if the Insurer is satisfied that your licence will not be reinstated with 5 years of the disability. Depending on the scheme it may also pay out a temporary monthly benefit if your licence is suspended due to ill health or accident. Normally, any temporary benefit paid will draw down on the lump sum amount payable.
An Income Protection scheme (PIP) is triggered by the fact that you are sick or injured (i.e. the status of your licence is not taken into consideration).
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What is Pilot Income Protection?
If you can not carry out your normal occupation as a pilot, PIP will pay you a pre agreed monthly income for an agreed period whilst you recover from an accident or long term sickness regardless of the status of your licence.
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So what happens if I am sick or injured and how do I make a claim?
Under the terms of the policy, you must advise Besso Limited and your HR Department as soon as possible of any potential claim. You will then be asked to complete a short questionnaire after 30 days of absence, which will provide the Insurers of the scheme with brief details of your condition.
Besso Limited act as an agent of the Insurer for this purpose and will ensure they advise the Insurers in accordance with the Policy conditions.
In many cases you will return to work prior to the end of the waiting period and therefore no claim will be made.
If your disability is prolonged, you will be required to provide more detailed information. After a specified period normally, 90 days, you will then be asked to complete a more extensive questionnaire and insurers may request additional medical reports or information from attending physicians, your aviation medical examiner or other parties.
It is very important that you advise both Besso Limited and your HR Department of any potential claim in order to commence the start of the waiting period.
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What are the benefits payable?
It will depend entirely upon the amount of monthly benefit provided by your scheme and the details will be shown in the Schedule of Benefits.
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For how long will the payments be made?
The maximum period that PIP will respond is 60 months (5 years) or up until attaining the maximum age shown in the schedule, or until you return to work, whichever the sooner.
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What is the waiting period or excess on my policy?
It will depend on the terms of the scheme (the figure will be clearly shown on the schedule) normally however it will vary between 90 and 180 days from the first date of sickness or accident.
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Does PIP offer any other benefits?
Yes, the core of any PIP scheme is the monthly Income Protection. It is also possible to include Personal Accident (PA), for both the crew member and spouse. In addition, Permanent Inability to Fly Insurance due to Specified Illnesses (only available to Etihad, Oman Air & Jazeera and Royal Jet pilots) and finally Legal Expenses is made available to the crew member only.
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How much Personal Accident benefit can I buy?
The maximum amount of cover available for the crew member is £250,000 and for the spouse is £125,000 (or currency equivalent).
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What is Permanent Inability to Fly Insurance as a result of Specified Illnesses and how much can I buy?
This type of insurance pays a lump sum benefit up to £ 50,000 (or currency equivalent) should you be diagnosed with certain named illnesses - Heart Attack, Coronary Artery By‐Pass Surgery, Stroke, Major Organ Transplant, Cancer, Kidney Failure, Multiple Sclerosis, Parkinson’s Disease, Motor Neurone Disease, Alzheimer’s Disease, Loss of Limbs or Eyes. Please refer to the policy wording for full definitions. Please note that this benefit is currently only available for Etihad, Oman Air, Jazeera Airways and Royal Jet pilots.
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How do I join a Group PIP Scheme?
Normally your Employer (the Airline) or a Pilots Association or Pilots Union will purchase a Group Scheme on behalf of all crew members. Therefore provided that you are fit and well and hold a full flying licence at the inception of the Group Policy you will automatically be included in the scheme (i.e. you need do nothing).
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What about my medical history?
Provided that you are fit and healthy at the inception of the Group Scheme in the vast majority of cases you will be automatically included. The possible exception to this general understanding is if the scheme is small (perhaps less than 50 crew members) in which case the members may be individually underwritten.
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Can I buy extra Individual Income Protection cover?
Yes, you may increase your benefit up to a maximum of 85% of your net earned monthly income. This will include any bonus, over time, sector pay etc. Please keep in mind that the 85% limitation is the combination of both the Group Scheme and any additional benefit purchased.
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What happens if my Employer provides me with an Income Protection scheme and I already have a Loss of Licence (LOL) cover?
You are very fortunate as you can enjoy both benefits. In the event that you are sick or injured and after the waiting period your PIP policy will pay out for a maximum of 60 months, or until you return to work, or you reach the maximum age shown in the schedule (whichever the sooner).
In the event that your licence is revoked you can also claim the lump sum payment as this is NOT income and therefore will not clash with your Income Protection insurance. It is also worth bearing in mind that if your Loss of Licence insurance has the option of monthly benefits you can decline to take them (utilise your PIP scheme instead) therefore you will not be drawing down on any lump sum amount that your Loss of Licence will ultimately pay out in the event that your licence is fully revoked rather than suspended.
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What happens if I have another Income Protection Scheme?
You should ensure that any additional income protection cover will not reduce the amount that your PIP cover will pay out due to this additional cover. Remember that you can not insure more than 85% of net monthly income. We recommend that you provide full information to Besso Limited Insurance Services who will be very happy to advise you.
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Who is eligible to join PIP?
Any crew member who is in full time employment and has held a professional commercial licence for at least 12 months.
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Who is the Insurer for the scheme?
Catlin Insurance Company (UK) Limited
20 Gracechurch Street
London
EC3V 0BG
Company Number: 5328622
As a member of Lloyds they are 'A' rated.
Regulated by the Financial Conduct Authority (FCA)
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Who is the Broker for the Scheme?
Besso Limited
Regulated by the Financial Conduct Authority (FCA)
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What if I am not a member of a Group Scheme, can I still join as an individual member?
Yes, you may apply for individual membership at any time that you wish, please click here.
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What if I am already a member of an existing Group Scheme, what do I have to do?
If you are a member of an existing Group Scheme and you are happy with the benefits that have already been provided to you, in this case you need do nothing further.
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I am already a member of an existing Group Scheme and I would like to consider buying some additional coverage, what do I do?
Please select your Airline logo shown on the web page, this area is private to your Airline Group Scheme and thus is password protected. Please then follow the prompts.
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As an individual non Group Member how do I know that I have been accepted into the scheme?
All applications are subject to acceptance by the insurer (Catlin Insurance Company (UK) Limited). Once accepted, you will receive a written quotation and upon your acceptance of the terms you will then receive from Besso Limited the Policy Documents including a schedule which shows the benefits that you have purchased.
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When can I apply to join the scheme?
At any time that you wish.
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How do I proceed?
Please submit the Application Form to us as soon as possible.
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Is my claim effected by Tax?
In the HMRC collects 6% Insurance Premium Tax (IPT) on the premium. Any claim amount will be paid to you TAX FREE (all other territories will be subject to individual country tax legislation).
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What happens if I am not fit to fly but return to work in a different occupation and on a lower salary?
If for example you return to work "flying a desk" and on a reduced salary PIP will make up the difference in your current salary up to a maximum amount of 85% of your net lost earnings.
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What if I am made redundant?
PIP will only pay a claim resulting from bodily injury or sickness. However if a valid claim is presented prior to you being made redundant or the waiting period has already commenced, then your claim will continue to be handled by Insurers.
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What if I decide to leave my current Employer?
If you decide to leave your Employer any Company purchased cover will cease.
If you purchase additional voluntary benefits this policy will be cancelled with effect from the date of you leaving and any premium that has already been paid by you will be returned at pro rata from the date of leaving for the portion of the period up to the expiry of your policy, subject to no claims being made in the period of cover.
Please be advised that if a valid claim is presented prior to your leaving your employer or the waiting period has already commenced, then your claim will continue to be handled by insurers, under both the group scheme and any voluntary cover purchased.
However, if you move to an alternative employer that provides either a Group Pilot Income Protection or a Group Loss of Licence scheme and they are already a group scheme client of ours, you may continue your individual policy at the same discounted group rates.
Alternatively, if you move to an alternative employer that does not provide either a Group Pilot Income Protection or a Group Loss of Licence scheme via ourselves and you reside in the European Union, you will have the option to join our PIP Club as an individual member, however you will not qualify for the discounted group rates.
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What do I have to do at renewal of the policy?
If you have purchased additional benefits you will receive a renewal notice at least 21 days prior to the expiry of your policy inviting you to renew for a further 12 months.
Alternatively if you wish to increase your benefits you will be required to complete a short application form which will be reviewed by Insurers prior to accepting your increased cover.
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What if I am still confused by the entire subject or have a different question?
Please contact:
Louise Iredale
louise.iredale@besso.co.uk
Charlie Gosling
charlie.gosling@besso.co.uk
Ian White
ian.white@besso.co.uk
Besso Limited
www.aircrewbenefits.com
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