Mister Warning
Incorrect, Dune. EK pays 3 years lump sum and at the same time LIPS will commence the monthly benefit.
You may be right Mister Warning (see FAQ #5 below from the LIPS website
Loss of Income Protection for Emirates Pilots......... depending on how you interpret the response to the question.
Irrespective it is good coverage for the price and I'm glad to be a contributor.
Frequently Asked Questions
1. Does LIPS cover all pilots from all airlines?
LIPS is loss of license protection for Emirates pilots and we do not cover anyone other than our own pilots.
2. What if an individual was fired and lost his UAE licence?
LIPS will only cover you should you lose your licence due do to medical reasons which are not self inflicted (e.g. you poke your own eye out on purpose), of a mental health nature or pre existing.
3. What is the retirement age?
Although Emirates and many carriers now operate until 65 for the time being LIPS considers 60 years as normal retirement age. This may in the future be revised to 65 but there are no immediate plans to do so.
4. I am now 42 years old. Let`s say that I lose my license today. You would have to pay out 5.4 million AED’s, and that’s calculated on 25,000 per month only. Do you have that kind of money?
As the fund stands we have enough to cover over 5 times the industry average loss of license. As the membership increases this will only get better and favour the scheme as a whole. Members' contributions are very carefully managed and invested. Cash is currently the largest composition of the fund, by far.
5. When will LIPS make its first payment to you when you are unable to work due to sickness or injury?
LIPS will pay once we have received the GCAA Medical Board certification of loss of pilot medical - and the Emirates loss of license insurance entitlement has been received by the member.
6. If your injury is permanent (i.e. Loss of License) will LIPS pay no matter where you live? What is the cover for Captains and for First Officers?
Regardless of rank or time in the scheme LIPS will pay AED 25,000 per month no matter where you choose to relocate to. This amount increases yearly by 3% per annum, to a maximum of AED 35,000 per month.
7. If you lose your License but gain income from another source how does this affect the payments?
LIPS will continue to pay you the full amount as long as you are unable to hold a valid license and medical in any country. Should the committee feel that your personal disability circumstances have changed, you could be asked to present yourself to a doctor for further examination.
8. Which Doctor/organisation is entitled to declare a loss of licence?
UAE GCAA as the licensing authority are the only ones who can remove your license on medical grounds.
9. What about partial loss of licence?
No such thing - you have a license (possibly with conditions) or you don't.
10. What about if after a loss of licence I am able to work (non flying)?
That is up to you - LIPS pays regardless of other income.
11. Can I live anywhere (out of the UAE) when I lose my licence? Must the bank account be in the UAE for the payment?
You may (and in fact probably must, if you lose employment with EK!) live where you like and similarly bank where you like.
12. If the fund is short of cash/money, what are the rules? What happens first?
If there are too many claimants then the income of the fund is divided equally amongst the claimants. Remember though that statistically 3 out of 10000 will claim and that LIPS can support 1 out of 80!
13. If my Pilots Medical was suspended and I was to take a Ground Instructor position and at a later date if my Pilots Medical was permanently revoked, would LIPS honour my Loss of Licence benefit?
You will be covered and will be eligible to make a claim should you permanently have your licence cancelled, even though you may be forced to become a ground instructor. As long as your monthly contributions to LIPS continue, you will remain a LIPS member - and you do remain covered.
14. I have been contemplating joining LIPS for the last year now as I have heard through the grapevine that there have been some pilots whom have a had trouble placing claims because of the definition of "Permanent Loss" vs "Temporary". Could you kindly provide me with what exactly would constitute a Permanent Loss of License as described by the GCAA? Other pilots have told me that the GCAA has no real definition of "Permanent" so someone with a medical condition could sit in limbo indefinitely.
LIPS would consider the loss of license to be permanent when all medical evidence indicates that a pilot can no longer hold a valid medical certificate in any country. Generally, as a guideline only, this would be when a pilot receives his/her loss of license benefit payout from Emirates.
15. Has LIPS ever refused a claim made by a pilot, after he/she submitted a formal payout claim to LIPS?
LIPS has NOT refused any claim made, by any LIPS member, to date.
16. Do benefit payments stay at Dhs 25,000 per month? What about inflation?
As per the Rules, LIPS benefits increase by 3% per year, to a maximum of Dhs 35,000 per month.
17. Are there any LIPS death benefits payable to my family, in the event I die?
Yes, your beneficiary will receive a 100% return of all your LIPS contributions in the event you die, while still a LIPS member. Please refer to the Rules for additional details