In the case of a claim under the Group Disability Insurance, the benefit will be paid to you.

The cover applies 24 hours per day seven days a week anywhere in the world.

The health evidence required will vary according to the type of application that you are making and how much cover you are applying for. The requirements may include (but are not limited to) a Personal Statement, blood tests, and a GP medical examination. In some cases, the insurer will request information directly from your Doctor.

• Group Disability Insurance - new application and increases in benefit level or decreases in wait period
  
  Cover is automatically available to all applicants who are able to sign the declaration on the application form that you hold a current Civil Aviation medical certificate, and that you have not suffered any medical deficiency requiring declaration to the Civil Aviation Authority or consultation with your General Practitioner during the previous 36 month period.
  Applicants who are unable to sign the declaration are required to provide further health evidence.

The information that you provide in your application or any other form required by the insurer is used by the insurer to assess your application for cover.

No information is released to any party other than NZALPA, the Insurer, or the Advisers without your express permission.

If you are applying for cover and you do not provide answers to the questions in the Application Form will not be able to be offered.

The GDI complements the protection provided by the MBF. GDI will protect the capital benefit that you have under MBF so it isn't eroded by claiming for lost income. This means if you can't return to flying then you will still have the full capital benefit available to you after 2 years on claim. MBF will still provide the same support to you whether you are receiving payments from GDI or MBF.

Benefits paid from the Group Disability Insurance are not taxable. The NZALPA Trustees confirm that the GDI Insurance is provided by way of a Sickness and Disability Policy ("SAD" Policy), which provides benefits that are not currently assessable as income by the IRD.

Simply complete the appropriate application form available from [email protected]. On the GDI form, tick the "change to existing cover" box. Your cover can only be changed in March of each year preceding renewal.

The Adviser for the GDI programme is Howden

This is a summary of the policies and does not include the complete terms and conditions. For full details of the terms and conditions, and any exclusions applicable, please refer to the Policy documents. If there are any discrepancies between this summary and the Policy documents, then the provisions contained within the Policy documents will apply.

You can obtain a copy of either of the policy documents from NZALPA or Howden. There is also a handy member booklet which is a summary of the policy as a link to a pdf.

If you believe that you are eligible to make a claim under the policies, please contact [email protected]. You will be provided with a Claim Form that you will need to complete to provide detail of the circumstances of your claim.

You should make a claim as soon as you become aware of circumstances that could lead to a claim under the policies.

Any forms that you require for claims will be provided to you. If you need replacement forms these will be available from Howden or the forms tab on this website.

Any costs will usually be met by you - this includes regular monthly GDI claim reports. If the Insurer requests additional medical evidence or examinations in support of a claim, the costs relating to the additional information will usually be met by the Insurer.

Underwriting is the process that the insurer follows to determine whether or not people are eligible for insurance cover.

You may need to be underwritten if:

• You are applying for cover in excess of specified amounts; or

• If you are unable to sign the declarations on the Application Form

If you need to be Underwritten you will be advised.

The first step in the Underwriting process is completing an Application Form. The Application Form contains a declaration which includes a number of statements.

Once the insurer has completed an assessment of your application you may be required to provide further information.

No. Any underwriting completed in relation to an application for will not have any impact on any existing cover.

All cases are different, however depending on your level of cover or medical history, a report may be requested from your doctor, and you may have to undergo a medical examination.

Any costs for underwriting will usually be met by the insurer.

Any forms that you require for underwriting will be provided to you. 

When you leave NZALPA or cease to be eligible for cover under the policy, your GDI policy will be cancelled.

Email: [email protected]

The GDI policy will provide a benefit for a maximum of 2 years but ceases when you turn 65. The pricing and benefit levels are different for members who are 61 or older to reflect this, which is why some of the stand-down periods aren't available and the premiums reduce for older members. For example:

• You can’t elect a 2 year stand down period once you are 63 because you would be 65 before the first benefit payment is due

• If you are 63 and elect a 1 year stand down period then the premium has been reduced to reflect the fact that the maximum time that you can receive the benefit is 1 year, rather than the usual 2 years, because you’ll turn 65 halfway through the claim.

The MBF benefit abate at a rate of 10% per year from age 55, so a pilot at age 60 will only have 50% of their benefit left under the MBF. Once you turn 55 your total benefit amount starts to reduce, so while the monthly benefit is still paid out at 90% of your pre-loss income, you have a smaller amount of capital available to start with. GDI insurance becomes even more important if you wish to preserve your capital benefit under the MBF once you turn 55.

Utilising both MBF and GDI Graph

The MBF provides cover for up to 5 times salary with a maximum of $600,000.  This can be paid in 2 ways

• Capital benefit paid out if you lose your medical permanently

• Monthly benefit up to a maximum of 90% of your pre-loss income

The monthly benefit amount reduces the available capital benefit if it turns out that you can’t return to flying on medical grounds.

The GDI insurance is complementary to the MBF, as it will pay a monthly amount to you instead of drawing down your MBF benefit, preserving your capital amount.

The MBF benefit abate at a rate of 10% per year from age 55, so a pilot at age 60 will only have 50% of their benefit left under the MBF. Once you turn 55 your total benefit amount starts to reduce, so while the monthly benefit is still paid out at 90% of your pre-loss income, you have a smaller amount of capital availanle to start with. GDI insurance becomes even more important if you wish to preserve your capital benefit under the MBF once you turn 55.

Your premiums increase based on your age, the amount of cover you elect and the prevailing rate at the renewal date. The Policy renews annually each April, so each anniversary, your premium is likely to increase as your Age Next Birthday changes. The GDI rates are not banded, so increases in premium are based on your increase in age each policy anniversary, or any changes to benefit amount or wait period elected.