You sat through a stringent medical when you started training, and you'll face regular check-ups for the rest of your career.
We understand CASA takes a cautious approach, and even a relatively minor issue, one that wouldn't stop an office-based employee from working, could see you grounded for months before you're cleared to return.
Loss of Licence Insurance is your financial security if that happens, protecting your income and financial commitments whether the loss is temporary or permanent.
What loss of licence insurance actually covers
Aircrew Insurance provides flexible Pilot Loss of Licence cover designed for Australian commercial pilots.
Depending on your circumstances and the cover selected, the policy can provide two core benefits:
The long-term inability to fly cover pays out a lump sum capital benefit up to $1,000,000 (depending on your age) if you are unlikely to return to flying because you have lost your medical. This benefit is designed to clear major financial commitments, such as a mortgage.
The temporary inability to fly cover provides an income if you lose your medical temporarily. The monthly benefit payable is up to 85% of your income, capped at $15,000 per month. This benefit has a range of waiting periods before benefits start to accrue, which are 60, 90, 120 or 180 days. Monthly benefits are payable up to a maximum of 24 months. This benefit is designed to help you continue meeting your monthly expenses until you are well enough to return to flying.
You may be entitled to reimbursement
Under Clause 20.3(c) of the Air Pilots Award 2020, eligible-permanent hire pilots may be entitled to an annual allowance of up to $3,092, as at August 2026, to assist with the cost of Loss of Licence insurance.
You may also be entitled to reimbursement under your enterprise agreement. Depending on your entitlement and the cover selected, your insurance can be arranged with no additional out-of-pocket cost.
We encourage all pilots, including contract workers, to check their employment contract or enterprise agreement to confirm whether they are eligible for reimbursement.
Where pilots get caught out
The first is simply not thinking about it at all.
Whether that's assuming a routine medical will stay routine, or the more common "it won't happen to me." It's an understandable mindset early in your career, but it's the same thinking we've seen leave pilots scrambling for cover only after a condition is already diagnosed.
The second is assuming their existing cover already handles this.
Most standard income protection policies weren't built for pilots, and even current providers of Loss of Licence style cover can leave pilots exposed when it comes time to claim, for reasons that aren't always obvious until it's too late.
How this compares to membership-based cover
Many Australian pilots have historically relied on membership-based schemes for loss of licence protection, and these have served the profession for a long time. If you're weighing up your options, a few structural differences are worth understanding:
Refunds vs premiums: Some funds offer a refund of contributions to long-serving members who leave, subject to eligibility rules, caps, and trustee approval. As an insurer, Aircrew Insurance can't offer an equivalent refund — premiums paid for insurance cover aren't returned. This is a genuine trade-off, and one worth factoring into your decision alongside the cover itself.
Medical condition coverage: Some membership schemes exclude or cap cover for a defined list of medical conditions. It's worth checking your own fund's rules to see exactly what's excluded. Aircrew Insurance does not rely on a fixed list of excluded conditions, cover for non-pre-existing conditions is assessed under the general policy terms, and pre-existing conditions can be individually assessed and may be covered depending on circumstances.
Claim payments: Aircrew Insurance transfers the financial consequences of a loss to insurers (underwritten at Lloyd's of London). If a valid claim falls within the policy terms and isn't subject to an exclusion, the insurer is contractually obligated to pay. A discretionary trust does not necessarily provide that same contractual certainty. In some arrangements, payment decisions may be subject to trustee discretion, even where a claim otherwise appears to meet the fund rules.
Cover limits: Some funds advertise maximum cover levels well above what most pilots will ever use. Higher limits mean higher contributions or premiums, and in practice, few pilots can justify insuring beyond their Award or Enterprise Agreement reimbursement level. So while a higher headline limit can look attractive, it's worth checking what it would actually cost you to use it before treating it as a genuine point of difference.
Cost: Pricing varies by provider and tends to shift with age, some schemes are more competitive for pilots joining younger, while Aircrew Insurance tends to be more competitive for pilots joining later in their careers. Get quotes from a couple of providers at your specific age to make a comparison.
The right option depends on your personal circumstances, career stage and risk tolerance, we recommend reading the fine print (policy wording or fund rules) of whatever you're considering.
Why pilots are choosing Aircrew Insurance
Mental health cover: Your job comes with high workloads and real pressure to maintain good psychological and physical health. Mental health conditions first diagnosed in the policy period are not excluded from cover or subject to limited benefit periods.
No membership fee: You do not need to pay an annual membership fee to access the cover.
Fully portable policy: Your cover moves with you, it's not tied to an Employer, Association or Union membership.
Top-up cover: If you already have Loss of Licence cover through your employer, a personal insurance policy can be purchased, bridging any gap between what you're currently covered for and what you actually need.
Simple claims process: Our claims process is designed to be simple, efficient and easy to understand.
Getting covered
Let us take some of the stress away. Knowing you're properly protected against the loss of your Class 1 medical certificate is one less thing to worry about.
Get a quote in minutes at aircrewinsurance.com.au, or call or email our team for a full copy of our policy wording and PDS at support@aircrewinsurance.com.au.
To compare your current cover with any existing arrangements, talk it through with a member of our team on 1300 089 847. We will help you compare your options, so you know, with full transparency, what's covered and what isn't.
Any general advice contained within this article does not take into account your objectives, financial situation or needs. You should consider whether any general advice is suitable for you and your circumstances. Before you make any decision about whether to acquire this Pilot Loss of Licence Insurance, you should read the Product Disclosure Statement (PDS) and/or policy wording before making your decision. For a copy of our Product Disclosure Statement (PDS), please contact us at support@aircrewinsurance.com.au. Published in August 2026, revised in September 2026. This article is sponsored by Aircrew Insurance (trading name of Strategic Underwriting Pty Ltd ABN 71 619 739 212 / AFSL No. 554636)