What is loss of licence insurance for pilots in Germany?
In short
Loss of licence insurance is a special policy for pilots, flight instructors and air traffic controllers. It pays if your aviation medical certificate is withdrawn after an accident or illness: often 2 percent of the sum insured per month for 12 to 24 months if the loss is temporary, and a lump sum if it is permanent.
Premiums are rarely published because each application is underwritten individually. These figures show the order of magnitude.
Example
Typical range
Group scheme of an Australian pilots' union, sum up to AUD 1,000,000 depending on age
about AUD 2,963 to 3,283 a year
Commercial pilot, 35, sum EUR 150,000, own policy
about EUR 750 to 2,250 a year
Commercial pilot, 50, sum EUR 150,000, own policy
about EUR 1,500 to 3,500 a year
The first figure comes from a published document (2026).
The figures for ages 35 and 50 are a guide value from quoting practice (Richtwert aus der
Angebotspraxis); your premium depends on age, health, sum and scope.
Worked example
First officer, 34, salary EUR 70,000
After a heart condition her medical is withdrawn for eight months. Calculated on the Swiss policy example.
Maximum sum (3 × EUR 70,000)
EUR 210,000
Chosen sum insured
EUR 150,000
Monthly benefit (2 percent)
EUR 3,000
90 day waiting period, then 5 months
EUR 15,000
For eight months grounded she receives EUR 15,000. If the loss were permanent, a lump sum of EUR 135,000 would follow.
What loss of licence insurance pays
Without a valid medical certificate (Tauglichkeitszeugnis) you may not fly, even if you could still do an office job. Loss of licence insurance covers exactly that: the loss of your flying licence through accident or illness.
A Swiss policy example shows the usual design: the monthly benefit starts after 90 days, the lump sum for permanent loss after 180 days, and monthly payments already made are deducted from the lump sum.
Event
Typical benefit
Medical withdrawn temporarily
2 percent of the sum per month, 12 or 24 months
Medical withdrawn permanently, accident or illness
100 percent of the sum insured
Permanent, due to a classified illness
in some policies 50 percent
Permanent, due to a mental health condition
in some policies 25 percent or excluded
Loss due to age or dismissal
no benefit
How it differs from German disability insurance
A German occupational disability policy (Berufsunfähigkeitsversicherung) pays if health problems stop you from doing your job. Whether a withdrawn medical is enough depends on the wording and is often disputed for pilots.
Loss of licence insurance is linked directly to the withdrawal of the medical. Many pilots in Germany hold both: one bridges the time until a new career, the other protects income until retirement.
Who needs it and who does not
It makes sense for airline and commercial pilots, flight instructors and air traffic controllers whose income depends on the licence. Insurers usually require a professional licence and income from it.
Private pilots do not need loss of licence insurance because they lose no salary. Student pilots use training cost insurance instead, which refunds training fees if the medical is withdrawn before they finish.
Limits of loss of licence insurance
Many policies exclude illness caused by alcohol or drugs, and mental health conditions are often covered only in part or for an extra premium. Read this clause before you sign.
Premiums rise with age while cover falls: in the Swiss example the maximum sum halves from age 60 and only accident cover remains from 63.
Group scheme or your own policy
The policyholder can be your employer, such as an airline or flight school, or you. Check your employment contract and collective agreement (Tarifvertrag) for an existing group loss of licence scheme and its sum insured.
If the group cover is too low, your own policy can top it up. Norman Nammert arranges special cover as an insurance broker (Versicherungsmakler); the insurer pays the commission, so the advice costs you nothing.
Step by step
Check your contract and Tarifvertrag for a group scheme.
Set the sum insured, usually up to three annual salaries.
Compare waiting periods and how long the monthly benefit runs.
Check exclusions for mental health, alcohol and pre-existing conditions.
Answer the health questions fully and truthfully.
Align the policy with your disability insurance.
Checklist
Benefit for temporary and permanent loss
Mental health conditions covered or knowingly excluded
Age limits and reduced cover from 60 known
Start of payments after 90 or 180 days clear
Sum fits your salary and your employer's scheme
Common mistakes
Relying on disability insurance alone
Leaving out pre-existing conditions on the application
Assuming the employer scheme is enough without knowing the sum
Waiting until entry age and health become obstacles
Questions and answers
Frequently asked
How much does loss of licence insurance cost?
As a guide about EUR 750 to 3,500 a year for a EUR 150,000 sum, depending on age and scope.
Group schemes are often cheaper.
Does it pay if I lose my medical because of age?
No.
Only loss through accident or illness is covered, not reaching an age limit or losing your job.
Do private pilots need it?
Usually not, as no income is lost.
Aviation liability and accident insurance matter more.
What is training cost insurance?
Cover for student pilots that refunds training fees if the medical is withdrawn before the licence
is issued.
Are mental health conditions covered?
It depends on the policy: some exclude them, some pay a reduced share,
