You sat through a stringent medical when you started training, and you'll face regular check-ups for the rest of your career. 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.
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.
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. Waiting period options of 60, 90, 120 or 180 days apply, with monthly benefits 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. Depending on your entitlement and the cover selected, your insurance can be arranged with no additional out-of-pocket cost.
You may also be entitled to reimbursement under your enterprise agreement. We encourage all pilots, including contract workers, to check their employment contract or enterprise agreement to confirm whether they are eligible.
Where pilots get caught out
The first is simply not thinking about it at all — 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 that leaves 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.
Why pilots are choosing 'Aircrew Insurance'
Not all Loss of Licence products operate in the same way. When comparing cover, it is important to look beyond the benefit amount and consider the policy structure, exclusions and claim requirements.
Broad medical coverage. The policy does not rely on a fixed list of named medical conditions that are automatically excluded or subject to a reduced benefit. Cover remains subject to the policy wording and any specific exclusions or conditions that apply to your policy.
Mental health cover. Your job comes with high workloads and real pressure to maintain good psychological and physical health. Mental health conditions are not automatically excluded from cover, subject to the policy terms, underwriting and applicable exclusions.
Insurance contract vs discretionary trust. 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, the insurer is contractually obligated to pay — unlike some discretionary trust arrangements where payment decisions may be subject to trustee discretion.
Top up your employer's cover. If you already have Loss of Licence cover through your employer, a personal Aircrew Insurance policy can bridge any gap between what you're currently covered for and what you'd actually need.
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.
Getting covered
Get a quote in minutes at aircrewinsurance.com.au, or contact the team for a full copy of the policy wording and PDS at support@aircrewinsurance.com.au.
To compare your current cover with any existing arrangements, call 1300 089 847. The team will help you compare your options with full transparency about 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 making any decision about whether to acquire Pilot Loss of Licence Insurance, read the Product Disclosure Statement (PDS) and/or policy wording. For a copy of the PDS, contact support@aircrewinsurance.com.au. Published in August 2026. This article is sponsored by Aircrew Insurance (trading name of Strategic Underwriting Pty Ltd ABN 71 619 739 212 / AFSL No. 554636)