AFAP MBF vs COMINSURE

[SumFingWong]

Hi Folks,

I am currently looking at my options for income protection / loss of licence cover.

I am currently with comminsure but am considering returning to the MBF.

Ive had a look at all the blurb each of these providers put out but to be honest, am no wiser for doing so.

Can anyone give me a practical appreciation of the pro's and con's of each ?

Has anyone had any experience making a claim on either policy ?

Thanks.

[Josh Cox]

Why don't you ring the MBF, send them a copy of your current policy and they may be able to compare apples with apples for you.

[avconnection]

Comminsure wont touch you with a barge pole unless you work for an airline; however, I'm not sure to what extent they consider an airline.

[porch monkey]

Last time I looked at comminsure's rates, They were legalized rape.

[Josh Cox]

This might help:

Pilot Loss of Licence / MBF vs Insurance (http://www.aapmbf.com.au/aapmbf-MBFvsINSURANCE.php)

[Dragun]

I was with MBF, went to Comminsure but have recently gone back after I couldn't justify paying the exhorbitant rate hike by Comminsure. The cover is generally better (higher cap of $2mil) but you pay through the nose for it and I personally don't think it's worth it anymore.

[Ozplanner]

My insurer offered me standard white collar worker rates on life and trauma insurance. No income protection though. Still, was half the price of CommInsure. :ok:

[VH-FTS]

My insurer offered me standard white collar worker rates on life and trauma insurance. No income protection though. Still, was half the price of CommInsure.


I guess it depends on whether you want cover that pays out if you cannot be a pilot any more due to losing your Class 1 medical (MBF), or whether you want a pay out if you only cannot do any job (normal insurance). You may find a condition causes you to lose your Class 1, but you don't receive a pay out because you are still able to complete a mundane office role.

[Ozplanner]

It's life and trauma cover so unrelated to occupation. Pays out if you die and pays out if you suffer a trauma (like cancer, heart-attack, burns, loss of limbs, paralysis). No other conditions.

[Jabawocky]

If my observations are anything to go by, the Loss of Licence cover by the AFAPMBF is hardly worth the paper it is written on.

Genuine case with genuine loss of medical, but a Captain who dearly wants to be still flying his beloved Boeing, and 15 months down the track.....no payout yet and they are hurrying head in sand.

I suspect the sneaky bastards are going to try a clever stunt, which they surely don't think the member is not aware of.

I have no dog in the fight, but it just seems to me to be a waste, and better to self insure by taking the same amount each month and investing it for yourself. If you never need the payout.....you get one anyway.

If anyone from the AFAPMBF is reading this, just because you may have been burned by a rip off in the past does not entitle you to rip off the genuine applicant members. :mad: This is the only excuse I can think of that would cause such a denial and deny until chased brought the courts approach. Costing both the member and the fund tens of thousands of dollars all for nothing.

[Popgun]

If you can afford it, Income Protection is a FAR superior insurance to Loss of Licence.

It seems there isn't much competition anymore so yes, CommInsure rates are quite high but I sleep better each night knowing my bills will get paid by my IP policy.

Too many loopholes with LOL in my view.

PG

[Ozplanner]

LOL has quite a few exclusions and a limited payment period (2 years I think) and if you don't work for a major airline then life and trauma is possibly all you can get (unless your super fund has something built in). I know ag pilots who have gotten the life and trauma cover at the cheaper standard rate (ie not the high CommInsure rate) and they are happy they could get this. Certainly better than having nothing if it hits the fan.

[Jabawocky]

rmcdonal

Well you are doing a good job defending them. Perhaps you can expand on it.

I am not about to go into the nitty gritty as the privacy of the member is at issue, as you rightly point out, but that does not mean my observation is not valid.

As I stated, if my observation is anything to go by its not seeming to be worth what it says. Simply comply with the policy deal...nothing tricky on either side.

If your observations are able to view deep enough, how many of those honouring of the policy were just application in>>>processed>>> and paid out, with an acceptable means of compliance where justified, as apart from the member having a rude rejection and then having to use lawyers to reach the accepted terms of the policy?

Just curious is all.:ok:

I also feel that why should the MBF be any exempt of public scrutiny of their product just like Boeing/Beech/Garmin/lycoming/QBE/Allianz etc. I do not expect any different of any of them, but its an insurance fund....so what?

[VH-XXX]

Like most of the population I have a home loan and my home loan organisation offer income protection to cover the loan for redundancy and injury etc. They will pay my loan for 8 months if something happens. What you can do with something like this is load up your home loan with cars etc (even though you shouldn't because it can affect your time to pay back the loan) and they end up paying for your house and car(s) whilst you are out of work.

[Di_Vosh]

I only know of two people who've made MBF claims: one who has since returned to work and one who was unable.

Both claims processed and paid with minimal fuss.

DIVOSH!

[Capt Fathom]

Some years back, a friend tried to access their Loss of Licence Insurance. It dragged on through the courts for quite some time. The Insurance company argued that the pilot had only lost their medical, not their licence! :ugh:
The pilot won some compensation in the end, but it just highlights how low an Insurance company will go to avoid paying out!

[Ozplanner]

Hey Capt Fathom, out of curiosity was that a local or offshore insurance company?