Pilot Income Protection | 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 out a lump sum if your licence is revoked. Depending on the scheme it may also pay out a temporary monthly benefit if your licence is suspended. Normally, any temporary benefits paid will draw down on the lump sum amount payable if the licence is fully revoked.
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 cannot 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 as soon as practicably possible (ideally within 30 days) of any potential claim.
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 at the midway point of the pre agreed waiting period, 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 Besso Limited of any potential claim in order to put insurers on notice of a potential claim.
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What are the benefits payable?
It will depend entirely upon the amount of monthly benefit that you have chosen, and the details will be shown on your insurance Schedule.
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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 on my policy
It will depend upon the period you have chosen however it will vary between 180 and 60 days from the first date of sickness or accident and will be clearly shown on your insurance Schedule.
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How do I join the scheme?
Please complete the Application Form by requesting a quote.
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What about my medical history?
Your medical history forms part of the application.
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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 policy will pay out due to this additional cover. Remember that you cannot insure more than 85% of your net average monthly income (including any other monthly benefits provided by your employer or individual schemes).
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Who is the Insurer for the scheme?
Millstream Underwriting Limited on behalf of Hiscox SA
52-56 Leadenhall Street
London
EC3A 2EB
Regulated by the Financial Conduct Authority (FCA)
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Who is the Broker for the scheme?
Lumley Insurance Limited
Regulated by the Financial Conduct Authority (FCA)
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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 12% Insurance Premium Tax (IPT) on the premium. Any claim amount will be paid to you TAX FREE.
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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, subject to the maximum benefit as shown in the schedule.
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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 do I have to do at renewal of the policy?
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.
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What if I am still confused by the entire subject or have a different question?
Please contact:
Charlie Gosling
charlie.gosling@besso.co.uk
Louise Iredale
louise.iredale@besso.co.uk
Ian White
ian.white@besso.co.uk
Besso Limited
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