As a commercial pilot, your Class 1 medical certificate is the foundation of your income. Unlike almost any other profession, a single adverse medical event can suspend your right to work indefinitely. There is no pushing through it, no desk job to fall back on. If CASA grounds you, you stop getting paid — and that is the risk that loss of licence insurance exists to address.
What is loss of licence insurance?
Loss of licence insurance provides financial protection if an injury or illness results in the suspension of your Class 1 medical. It is a specialist product, distinct from standard income protection, and providers like Aircrew Insurance offer two types of benefit that can be taken individually or combined:
Long-term inability to fly (lump sum benefit): Pays a capital sum — up to $1,000,000 depending on age and cover selected — if your medical is suspended long-term and you are unlikely to return to flying. A 90-day waiting period applies. This is the core benefit, designed to clear mortgages and large financial commitments.
Temporary inability to fly (monthly benefit): Pays up to 85% of your income, capped at $15,000 per month, while your licence is suspended temporarily or permanently. Waiting period options of 60, 90, 120 or 180 days apply, with a benefit period of up to 24 months. There is no requirement to exhaust sick leave first.
Why standard policies fall short
Most income protection policies available through superannuation or retail insurers are not built for pilots. Many exclude or reduce benefits for mental health conditions — a significant gap given the occupational stressors pilots face: irregular schedules, chronic fatigue, disrupted sleep, and the ongoing anxiety of recurring medical testing. Aircrew Insurance includes full mental health cover as standard. Individual policies are also fully portable, travelling with you regardless of employer or union changes, so there are no gaps when you move between airlines.
The Air Pilots Award — your employer must contribute
The Air Pilots Award 2020 (Part 4, Clause 20.3(c)) requires employers to pay permanent employees an annual allowance of $2,963 specifically to assist with the cost of loss of licence insurance. This is a legal entitlement, not a discretionary benefit. If you are a permanent employee flying under the award and not receiving this allowance, raise it with your employer.
Aircrew Insurance offers a tailored "Option B" quote calibrated to fit within the award allowance, meaning the contribution your employer is already obligated to pay can cover the cost of a compliant policy. The award also requires employers to provide personal accident insurance with a death benefit of at least $308,264 for most pilots — Aircrew Insurance offers a product that meets this requirement too.
What Aircrew Insurance offers
Founded in 2019 by Mark Bright — a specialist with over 30 years of international experience as a broker and underwriter — Aircrew Insurance is a family-owned agency backed by Lloyd's of London. Their product range covers fixed and rotary wing pilots across all flying activities:
Pilots Loss of Licence — the core product described above, covering agricultural, aerial work, commercial air transport, instructional flying and special task operations.
Income Protection & Loss of Licence (combined) — income protection paying 75–85% of monthly income, with an optional lump sum capital benefit if you are unlikely to fly professionally again. Waiting periods from 30 days.
Personal Accident Insurance — lump sum benefits for accidental death (up to $300,000) or permanent disablement. Available up to age 64, with 24-hour or flying-only cover options.
Student Pilot Fees Insurance — protects against unrecoverable training fees (up to $250,000) and accommodation costs if injury or illness prevents course completion, with a transition path to loss of licence cover once training is done.
Applications are accepted up to age 59. Claims involve Designated Aviation Medical Examiners (DAMEs), and no union or association membership is required for individual cover.
Getting a quote
If you are flying professionally without current loss of licence cover — or have not reviewed your policy recently — visit aircrewinsurance.com.au to customise a quote and apply online. Group schemes are also available for employers, flying schools and organisations.
General advice warning: the information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Before making a decision, consider whether it is appropriate in light of your particular circumstances and refer to the Product Disclosure Statement available at aircrewinsurance.com.au.
By David Roses in June 2026.