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.