the insurer's Loss of License policy provides financial security to pilots against permanent or temporary incapacity to fly due to medical disability. Section 1 (LOL) pays monthly salary compensation (up to 15 months for TMU) or 100% lump sum (for PMU). Section 2 (PA) covers accidental death and dismemberment. Your license is your livelihood — protect it.
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A pilot's flying license is their most valuable professional asset. If a medical condition — temporary or permanent — prevents them from exercising the privileges of that license, their income stops immediately. Loss of License (LOL) insurance replaces that income, protecting pilots, their families, and their financial commitments.
Permanent Medical Unfitness pays 100% of Sum Insured as a lump sum. Psychosis/Epilepsy: 18% of SI. 30-day survival period required.
100% SI Lump SumTemporary Medical Unfitness pays monthly compensation (lower of 75% salary or 1.25% of SI) for up to 15 months from Day 61.
Up to 15 MonthsAccidental death, loss of two limbs, two eyes, or one limb + one eye: 100% of SI. Fixed wing AND rotary wing. 24-hr worldwide.
100% SI PA CoverTMU triggered by DGCA Form CA-35 declaration of unfitness. TMU ends on receipt of fitness CA-35. India's official aviation medical process.
DGCA StandardCoverage continues even if your airline shuts down or stops paying salary. Claims subject to DGCA unfitness declaration — not employment status.
Policy TermCoverage operates 24 hours a day on a worldwide basis. Indian pilots employed abroad with valid Indian DGCA license are covered.
Global CoverSection 1 — The Core of Loss of License Insurance
Section 1 covers two types of medical incapacity: Permanent Medical Unfitness (PMU — your flying career ends) and Temporary Medical Unfitness (TMU — you're grounded but will return). The benefit structure, amount, and duration differ significantly between the two.
| Item | Condition | Benefit | Duration / Notes |
|---|---|---|---|
| Item 1 | PMU — All illness/injury (except Item 2) | 100% of Sum Insured | After deducting TMU paid· 30-day survival required |
| Item 2 | PMU — Psychosis, Psychoneurosis, or Epilepsy | 18% of Sum Insured | After deducting TMU paid under Item 4 |
| Item 3 | TMU — All illness/injury (except Item 4) | Lower of: 75% net salary or 1.25% of SI | Max 15 months· After 60-day waiting (India) |
| Item 4 | TMU — Psychosis, Psychoneurosis, Epilepsy | Same formula as Item 3 | Max 12 months only |
| Item 5 | Legal costs — court/enquiry attendance | Up to ₹10,000 | With insurer's consent· For events giving rise to claim |
| Total liability of company limited to 100% of the capital Sum Insured under both Sections combined. | |||
Section 2 — Aviation Personal Accident
Section 2 provides personal accident protection for aviation accidents and non-aviation accidents. Operating 24 hours worldwide, it covers both fixed-wing and rotary-wing pilots. If the LOL Section 1 payout is being processed and an accident occurs, Section 2 responds independently.
| Accident Outcome | Benefit |
|---|---|
| Accidental Death | 100% of Sum Insured |
| Loss of both limbs | 100% of Sum Insured |
| Loss of both eyes | 100% of Sum Insured |
| Loss of one limb + one eye | 100% of Sum Insured |
| Death or disability must occur within 12 months from date of accident. | |
"Any accident to the person Insured, whilst getting into or alighting from the aircraft or flying any Licensed Standard type of Aircraft either as Pilot or Crew. Licensed standard type of Aircraft would mean any aircraft duly licensed to carry passengers by appropriate authority irrespective of whether such an aircraft is privately owned or chartered or operated by regular airline."
"In the event of the disappearance of the Insured Person following a forced landing, stranding, sinking or wrecking of an Aircraft in which such Insured Person was known to have been travelling as an occupant or crew member, it shall be deemed after twelve (12) months that such Insured Person shall have died as the result of an Accident." If later found alive, all payments are reimbursed to the company.
Why Pilots Are Uniquely Exposed — India's DGCA Medical Framework
Every commercial pilot in India must hold a DGCA Class 1 Medical Certificate — renewed at strict intervals. Any medical condition that causes the DGCA to issue a "Class 1 Unfit" declaration results in immediate grounding. Loss of License insurance steps in from Day 61.
Heart attack, coronary artery bypass surgery, stent placement, heart failure — DGCA immediately grounds any pilot after a cardiac event. Recovery may take 6-18 months of TMU. Permanent cases = PMU.
Stroke, TIA (transient ischaemic attack), epilepsy, seizure disorders — any seizure means immediate permanent grounding under DGCA. Epilepsy specifically is covered at 18% of SI under the PMU structure.
Uncorrectable vision loss beyond DGCA Class 1 limits — retinal detachment, glaucoma progression, macular degeneration. DGCA standards require correctable 6/6 vision — deterioration can disqualify.
Uncontrolled Type 1 or Type 2 diabetes, insulin dependency. DGCA allows carefully managed diabetes but poor control triggers grounding. Hypoglycaemic episodes = immediate temporary grounding.
Many cancer diagnoses result in temporary or permanent grounding depending on type, stage, and treatment protocol. Chemotherapy and radiation typically require TMU for the treatment duration.
Severe depression, PTSD, anxiety disorders — increasingly recognized DGCA grounding causes. Psychosis, psychoneurosis covered at 18% of SI for PMU; standard formula for TMU (max 12 months).
3 Pilot Categories· Individual & Group Policies
The Loss of License policy is available to three categories of DGCA-licensed pilots: Flying Pilots, Non-Flying Pilots, and Ab-Initio Pilots. Age at commencement: 18 to 65 years.
Pilots holding a valid flying license by DGCA and valid medical certificate, presently employed in flying duties in India or abroad. Includes commercial airline captains, first officers, charter pilots, cargo pilots, and helicopter pilots in active service.
Pilots holding valid DGCA license and medical but presently not flying due to company closure, compulsory leave without pay, or pregnancy. The policy continues and covers even when the pilot is not actively flying — as long as the license and medical are valid.
Pilots holding a valid DGCA flying license and valid medical certificate, but who have never been employed as pilots worldwide. Trainee commercial pilots and newly-licensed CPL holders who haven't secured employment yet can also hold LOL coverage.
The 1.25% monthly TMU cap creates a direct relationship between SI and salary replacement. To receive full monthly salary during TMU (no shortfall), your SI must be at least 8× your annual net salary.
What Would My TMU Monthly Benefit Be?
The TMU monthly benefit follows a precise two-step formula confirmed from the FIP/ policy: Step 1 is 75% of net salary (higher of Form 16 basis or recent 3-month average). Step 2 is 1.25% of SI. The LOWER of the two is your monthly benefit.
⚠️ This calculator illustrates the TMU benefit formula as confirmed from the FIP/ LOL policy. Actual the insurer policy terms confirmed at 022 4302 0000. Formula: Step 1 = 75% × monthly salary. Step 2 = SI × 1.25%. Benefit = lower of Steps 1 & 2. Payable from Day 61 (India) or Day 71 (abroad) to date of fitness or 15 months max.
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Beyond the core LOL and PA sections, the policy includes several confirmed special conditions that address the unique realities of pilots' lives — airline closures, pregnancy, repatriation, terrorism, and cumulative bonuses.
"If pilot's employer closes down the airline or delays salary due to a defaulting employer, compulsory unpaid leave, the coverage will continue despite being unemployed." Claims admissibility subject to DGCA unfitness declaration. Critical for India where airlines have closed (Jet Airways 2019, Kingfisher 2012).
Sum Insured increases by 7% cumulatively for each claim-free renewal year. Your protection grows as your salary grows — automatically improving coverage for senior captains whose earnings increase over their career.
During pregnancy, policy switches to PMU/PA cover only (at 5% premium refund as token). If a non-pregnancy-related illness/accident incapacitates the pilot permanently, the claim is honored. TMU compensation excludes compulsory grounding period. Age limit for pregnancy provisions: 55 years.
"Covid claims are covered under the policy. Omicron, being a variant of Covid 19, will also be covered." However, all other claims caused by a declared endemic, epidemic, and/or pandemic are not covered. Post-COVID complications that ground a pilot trigger LOL benefits.
"Any loss caused due to the actions of Naxalite Groups/Maoists/Ultras and other acts of Terrorism will be covered." Applies to both Section 1 (LOL) and Section 2 (PA). India-specific coverage for political violence scenarios — unique for an aviation product.
Up to ₹10,00,000 per pilot for repatriation if bodily injury during the policy period necessitates return. Covers reasonable travelling expenses for the insured person, or reasonable funeral expenses and transport costs in case of death.
"Pilots holding Fit medicals at policy inception are covered as per agreed terms." If a pilot is unfit at policy inception, they will be reinstated once declared fit by DGCA. Pilots who are medically fit when the policy starts are fully covered from day one.
"In case of adverse medical reports, the insurer may deny or reduce the Sum Insured to pilots (to either 50%, 60% or 90% of Sum Insured). Premium will reduce proportionately." Pilots with health concerns at renewal should proactively discuss SI with their broker.
"A pilot who held the insurer's Loss of Licence insurance policy through the Federation of Indian Pilots (FIP), received a settlement of ₹2.67 crore. Notably, this claim was settled within two business days." — Adarsh Agarwal, Appointed Actuary, the insurer (quoted in, 25 July 2025).
This real-world claim confirms that LOL + PA policies in India settle quickly when all documents are in order — and that the PA section responds immediately on aviation accidents, independently of any LOL claim in progress.
What the Policy Does NOT Cover
Exclusions confirmed from the FIP/ policy document (2024). Standard exclusions apply — incapacity from pre-existing conditions, deliberate acts, war, and substance abuse are not covered.
Any personal injury, illness, disease, or disability existing prior to policy inception — whether declared or not. If you had a cardiac condition before the policy started, LOL claims arising from that condition are excluded.
War (declared or not), invasion, acts of foreign enemies, civil war, rebellion, military operations — incapacity arising from participation in naval, military, or air force operations in war context.
Incapacity resulting from the insured pilot actively participating in riots or civil commotion. Note: Terrorism is separately COVERED per confirmed policy terms.
Intentional self-injury, suicide, or attempted suicide (whether felonious or not). Also excludes provoked assault, dueling, and fighting (except in bona fide self-defense).
Deliberately exposing oneself to exceptional danger, except in an attempt to save human life or property. Criminal acts for which the pilot has been convicted also excluded.
Riding or driving in any kind of race. Illegal or unauthorized flying. Aerobatics outside of official authorization. High-risk aviation activities not covered under standard commercial pilot operations.
Incapacity resulting from chronic alcoholism or the habitual taking of drugs. DGCA already disqualifies pilots found with alcohol or drugs in their system — confirmed from DGCA CAR Section 8.
Confirmed from FIP/ 2024: "Venereal diseases and/or AIDS will not be covered." Applies to both Section 1 (LOL) and Section 2 (PA).
Ionizing radiation or contamination by radioactivity from nuclear fuel, nuclear waste, or combustion of nuclear fuel. Standard exclusion across all insurance products.
Temporary disablement resulting directly or indirectly from pregnancy or consequences thereof. However, if a pregnant pilot suffers an unrelated permanent medical event, the PMU claim is honored after the compulsory grounding period.
For Indian pilots employed abroad: "No payment will be made to foreign accounts or in foreign currency." All TMU/PMU payments made in Indian Rupees to Indian bank accounts only.
Incapacity arising from flying without a valid license, flying outside CAR requirements, or deliberate breach of DGCA regulations. Also excludes unauthorized aerobatic activities or flying restricted routes.
What to Do When Declared Medically Unfit
The LOL claim process in India is structured around DGCA Form CA-35. For group policies through pilot associations (FIP, airline unions), the association facilitates the claim. For individual the insurer policies, notify the insurer/your broker immediately upon medical unfitness declaration.
You suffer a medical event that prevents you from exercising flying privileges — cardiac, neurological, vision, mental health, or other qualifying condition. See your company doctor / DGCA Class 1 Medical Examiner immediately.
DGCA Class 1 Medical Examiner issues Form CA-35 declaring you "UNFIT." This is the official trigger document. For serious hospitalization where CA-35 cannot be obtained immediately, hospital documentation can be used as an interim trigger.
Notify the insurer or your broker (022 4302 0000) within 30 days of being declared unfit. For group policies through FIP/airline union — notify the association office promptly. Provide CA-35, last 3 months' salary slips, and Form 16 of last FY.
No TMU compensation is payable for the first 60 days (India) or 70 days (abroad). Day 61 onwards: monthly benefit calculated and paid. Compile salary documents for the benefit calculation (75% salary vs 1.25% SI).
Monthly compensation deposited to your Indian bank account. Continue submitting monthly salary slips and updated medical certificates as requested by the insurer. Track your 15-month maximum benefit window from the date of unfitness.
If declared FIT: Submit fitness CA-35 — TMU ends, you return to flying. If declared PERMANENTLY UNFIT (PMU): 30-day survival period applies, then 100% SI lump sum paid. If TMU extends beyond 15 months without fitness: PMU assessment initiated.
Pilot Insurance Questions
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