Loss of Licence Insurance
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Loss of Licence Insurance
Can I ask my ATCO colleagues here whether they still benefit from an employer provided Loss of Licence Insurance cover. I am being advised that such policies are becoming harder to find.
How about you professional pilot types, do you get professional qualification insurance protection?
Regards
How about you professional pilot types, do you get professional qualification insurance protection?
Regards
niknak
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Last I heard, only NATS (a multiple of salary), BAe (the same), a couple of others, and Serco (a lump sum of around £25K, or was it £25
), loss of licence insurance.
Loss of licence insurance for atco's is very difficult, if not nigh on impossible to negotiate as a unit, and individual policies to cover a lump sum of £35K cost around £450 per year depending on individual circumstances.
Otherwise most places seem to offer some form of medical insurance cover which will pay a proportion of gross salary until retirement age. However, be warned, such policies are full of loopholes when it actually comes to a claim, such as:
1 - usually, the employee must remain employed by the employer to claim the benefit, albeit at a nominal salary of £1 per year.
2 - The employee may not undertake any other paid employment whilst claiming the insurance benefit, if they do, the payout is reduced in proportion to the other salary earnt.
3 - The benefit is usually no more than 60% of gross salary, subject to income tax, possibly minimal national insurance, and also if the employee wishes to remain in the pension scheme, appropriate deductions.
Last year an unfortunate colleague failed his medical, never to have it reinstated, with the union's assisitance, he fought to get every benefit listed under a very ambiguous and long winded policy, he got what he was entitled to, but it seemed an absolute minefield.
In my experience, such policies are fine if you are within 10 years or so of retirement age, possibly already have a military or other pension upon which you can draw, or were considering early retirement.
However, if you are under the age of 50, they screw you to the wall and would be financial disaster.
Bear in mind that 60% of salary may sound OK, but if you have a family to raise, and have commitments appropriate to your current salary, could you really afford to take a 40% pay cut?
), loss of licence insurance.Loss of licence insurance for atco's is very difficult, if not nigh on impossible to negotiate as a unit, and individual policies to cover a lump sum of £35K cost around £450 per year depending on individual circumstances.
Otherwise most places seem to offer some form of medical insurance cover which will pay a proportion of gross salary until retirement age. However, be warned, such policies are full of loopholes when it actually comes to a claim, such as:
1 - usually, the employee must remain employed by the employer to claim the benefit, albeit at a nominal salary of £1 per year.
2 - The employee may not undertake any other paid employment whilst claiming the insurance benefit, if they do, the payout is reduced in proportion to the other salary earnt.
3 - The benefit is usually no more than 60% of gross salary, subject to income tax, possibly minimal national insurance, and also if the employee wishes to remain in the pension scheme, appropriate deductions.
Last year an unfortunate colleague failed his medical, never to have it reinstated, with the union's assisitance, he fought to get every benefit listed under a very ambiguous and long winded policy, he got what he was entitled to, but it seemed an absolute minefield.
In my experience, such policies are fine if you are within 10 years or so of retirement age, possibly already have a military or other pension upon which you can draw, or were considering early retirement.
However, if you are under the age of 50, they screw you to the wall and would be financial disaster.
Bear in mind that 60% of salary may sound OK, but if you have a family to raise, and have commitments appropriate to your current salary, could you really afford to take a 40% pay cut?
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At my unit we are very fortunate to have Loss of Licence insurance provided although I think it is more like a loss of earnings policy. It is unlike most Loss of Licence schemes I know in that there is no lump sum payment.
Basically, if you lose your licence on medical grounds, the policy will pay up to your basic salary until normal retirement age (60 for me) There are several conditions of course like most insurance policies. If you are unable to work in any capacity, you benefit the most i.e. the policy pays out your basic salary. If you lose your licence but are still able to work, even if it is sticking stamps on envelopes, then the policy tops up your earnings to your basic ATCO salary. The policy states that the company have the right to find you work of some description if you wish to claim the benefits.
Basically, if you lose your licence on medical grounds, the policy will pay up to your basic salary until normal retirement age (60 for me) There are several conditions of course like most insurance policies. If you are unable to work in any capacity, you benefit the most i.e. the policy pays out your basic salary. If you lose your licence but are still able to work, even if it is sticking stamps on envelopes, then the policy tops up your earnings to your basic ATCO salary. The policy states that the company have the right to find you work of some description if you wish to claim the benefits.
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At Newcastle we have a ‘sole occupation’ loss of licence scheme, this pays two thirds of your salary until pensionable age. This means they can’t expect you to take another job if they think you’re able to do so! We also had a lump sum paid, but that was taken off us last year. 
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When I worked at Kidlington in the very early 70s ATCOs had LoL Insurance as part of their conditions of service. It amounted to over 2 years worth of salary. A friend of mine had a heart attack on the night he resigned from the company and they paid out.
I had LoL through GATCO for some years but gave it up becuase the NATS deal was so much better.
I had LoL through GATCO for some years but gave it up becuase the NATS deal was so much better.
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Thanks for the replies....it sort of bears out what is/will be happening around here.
Somewhere during the time we were 'Serco-ised' (1994 to 2004) we lost our insurance. Serco went 'self insuring' if thats not an oxymoron.
Now the management are claiming that adequate cover cannot be purchased from the insurance world and that the Long Term Disability Insurance they have arranged is a better alternative.
Regards
Somewhere during the time we were 'Serco-ised' (1994 to 2004) we lost our insurance. Serco went 'self insuring' if thats not an oxymoron.
Now the management are claiming that adequate cover cannot be purchased from the insurance world and that the Long Term Disability Insurance they have arranged is a better alternative.
Regards
niknak
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SATCO Biggen,
Sadly, I suspect that management are, to some extent, correct.
Insurance companies exist to screw individuals and companies to the wall, and whilst they are quite happy to take premiums with no claims, they will increase premiums at the drop of a hat if they think a claim might be around the corner.
I suspect that however unfair it may seem, your employers probably have a point, and being utterly ruthless with them in negotiating is the only way around it.
All the best.
Sadly, I suspect that management are, to some extent, correct.
Insurance companies exist to screw individuals and companies to the wall, and whilst they are quite happy to take premiums with no claims, they will increase premiums at the drop of a hat if they think a claim might be around the corner.
I suspect that however unfair it may seem, your employers probably have a point, and being utterly ruthless with them in negotiating is the only way around it.
All the best.
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ITS NOT AS GOOD AS IT SOUNDS
Think you are in a scheme that tops up your pension to your salary level until you retire....well one big company scheme soon lets you down.... your salary is defined for calculation purposes as the day after your med cert is withdrawn not the actual salary that you earn when they get round to retiring a year down the line after a nice pay rise.
From the reduced value of your salary they then deduct the value of your uncommuted pension..fair enough they then pay the difference.
...well no because they also deduct whatever is the value of the the invalidity benefit currently applicable approx £3600 per year...whether or not you claim it.....thats fair cos its youe choice r whether you want to claim....well it would be true except the DSS changed the rules in 2002 and claw back something like 50p for every pound your pension pays over £80pw...it means in practical terms that i doubt if any controller would get any money...so its ok the insurance save themselves 3600 which is a lot of money over say ten years...oh of course they review your case after 12months and reduce your payment by %50 if you are deemed capable of work
sorry about the garbled ending had finger trouble and posted jn error... was trying to say DSS will pay credits towards NI contributions but in return more reviewsand medicals...sorry again for the typos now you know why i retired
From the reduced value of your salary they then deduct the value of your uncommuted pension..fair enough they then pay the difference.
...well no because they also deduct whatever is the value of the the invalidity benefit currently applicable approx £3600 per year...whether or not you claim it.....thats fair cos its youe choice r whether you want to claim....well it would be true except the DSS changed the rules in 2002 and claw back something like 50p for every pound your pension pays over £80pw...it means in practical terms that i doubt if any controller would get any money...so its ok the insurance save themselves 3600 which is a lot of money over say ten years...oh of course they review your case after 12months and reduce your payment by %50 if you are deemed capable of work
sorry about the garbled ending had finger trouble and posted jn error... was trying to say DSS will pay credits towards NI contributions but in return more reviewsand medicals...sorry again for the typos now you know why i retired
Last edited by PPRuDe; 26th Jun 2004 at 13:13.
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I heard a few years ago that LBA had a loss of licence insurance policy for the ATCO's.The management then decided to terminate the agreement withiut telling anybody to save money. Then one of the ATCO's lost their medical permanently. Instead of going to court and to lose their jobs the management now they pay the ATCO Loss of Licence insurance through the company. Cutting costs again but losing out in the end, costing the airport and taxpayers of the local councils more money. If you have a good scheme make sure that the management are fulfilling their side.
