It must be mentioned that in the cases mentioned above where the company simply pays out to the pilot, tax will still then have to be paid at 40% on the benefit received as it is then seen as income.
You can either accept it as a benefit in kind and pay tax accordingly, or opt to pay the tax on benefit.
I know BALPA is working on the Inland Revenue to try to get the decision to see Loss of Licence insurance as a benefit in kind reversed.