External Loss Of License Insurance

[Shaka Zulu]

Thinking of topping up by taking out some extra insurance.
Have got a quote from Hiscox of £520 pa. for a sum insured of £172 000.


Just wondering if this is a competitive quote or any top tips before I sign on the dotted line?


Thanks
SZ
(29yo)

[Capt.unregistered]

Yeah I was wondering which company to go for? The Balpa policy or Hiscox or whether there was any other good companies out there, although nobody has yet answered me.

[Capt.unregistered]

come on guys someone must know...........

[Thomas coupling]

Might I recommend: Haywards of London. They do a lot and I mean a lot of LOL.

Can I ask: is the insurance you are talking about, loss of licence or simply third party cover insurance?

[Capt.unregistered]

Hi,

Thanks for your reply:) Just loss of licence of insurance.

[Thomas coupling]

I have personal experience of organising LOL for professional pilots. Some comparisons for you.
My last premium for LOL was for cover for £200,000 and it amounted to £4000 per year. That was in 2007.
I would suggest that there is either a zero missing from your quote, or its a monthy quote? Or you are not in the UK?
One gets what one pays for.

Something else to consider: Read the small print. 87% of all LOL doesnt pay out. Do u know why? The CAA(UK) only revoke (take away for ever) your licence for 2 or 3 medical reasons and a few reasons for illegal activities. The medical reasons include terminal cancer and diabetes.
EVERYTHING else causes them to SUSPEND your licence which is why the insurance company don't pay out.
LOL is a corrupt industry and only a miniscule number of brokers insure you properly for loss of income/profession...........
READ THE SMALL print

[global707]

Spot on TC. Most folk migrating towards some sort of income protection scheme
:8

[Capt.unregistered]

TC,

If thats the case- only a few companies paying out why are the premiums so high?

What would people recommend I do then?

[Thomas coupling]

Look at what you want to insure:
Your salary or a one off payment.
The former normally involves the insurance company 'topping up' any shortfall AFTER you get your new non aviation job clearing bins etc.
So you did earn: £50000 as a pilot, now you are working as a dustbin mans assistant on £10000 the insurance company will top it up FOR A LIMITED PERIOD, only I believe.

Once youve decided on the way ahead, remember this:
You will be insured for the role that is shown on the insurance policy.
EG: If that 'job description' states Mr F Bloggs is insured in the role of: PILOT. It means that if something happens to you medically such as, say a mild stroke; for single pilot operations, you will lose your job (EG: Instructor, single pilot corporate work etc etc) AND you will NOT get insurance because the cover is for a PILOT and you could technically (impossible in reality) go fly for someone who requires twin pilot ops, like airlines etc. (the insurance company dont discriminate between rotary or FW).
If, on the other hand you are an airline pilot and you suffer a mild stroke, (a) the airline could keep you on but you wouldn't then get your insurance payout. In other words the CAA wouldnt revoke your licence for 90% of ailments. They would suspend it expecting you to get better and also expecting you to revalidate your licence under twin pilot ops for example.

THE INSURANCE COMPANIES KNOW THIS and play on your ignorance.
BALPA did / have done nothing to clarify matters either, probably because they exist mainly for BA who don't experience these single pilot issues.:ugh:
[Things may have changed lately].

So: going back to your next move. Once you have decided what 'type' of insurance you want and for how much cover, the next stage is to ensure that the "insured's profession" is as accurate as possible.

EG: Let's say you are a single pilot operator. You should ensure this is entered on the policy as your profession. Thus, the insured is covered against loss of: "single pilot ops". That way you would be able to claim if you lost your job.
Be warned, this is not as easy as you think - changing policies. It may be that the insurance they are offering you is an 'off the shelf insurance policy' covering all pilots.
That's when you may need to either: negotiate or move to another provider.

Finally: God forbid - if you think you are going to have to claim (probably too late by then) make sure you comply TO THE LETTER with all their clauses along the way, or you could find the slime balls (and ALL insurance companies are slime balls) weedling out of it.
EG: If you don't notify them by date "x" that you may be claiming; if you don't send them proof of your condition from the GP/consultant by "y" date........

Also look at the gestation period of the policy.
"In the event the insured claims, a period of 6 or 12 months will pass before any payments are issued. Again this period can be negotiated before you sign for the insurance.

Haywards (I have absolutley no links with them anymore) are (a) Very big in this business and (b) very ethical and are prepared to negotiate a policy to suit the individual.

Happy hunting and remember: BUYER BEWARE.

Let me know if u need more info - it's an expensive mistake to make......

[Capt.unregistered]

TC,

Thanks so much for your long post regarding this matter. You bring up many valid points.

I am now wondering how much it will cost me and whether its such a good idea. I am not in a position to (or will) pay vast sums of money to a premium- I am only after "bog standard" multi -crew cover that gives me a lump sum.