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The answers that are set out below are intended to give basic and simplified information to members on commonly asked questions about how the MBF operates. However, while care has been taken to try to ensure that the answers are accurate, they are no substitute for the rules of the Fund, which will prevail over the answers in the event of any inconsistency. Members should therefore consult the rules in any situation where it is necessary for them to have a more detailed and definitive statement of where they stand on a particular aspect of their membership.
Q: Who can apply for loss of licence cover through the MBF? A: Any financial pilot member of NZALPA or flight engineer who is a financial member of the Aviation & Marine Engineers’ Association aged 50 years and under who is currently the holder of a NZCAA medical certificate, Q: Do I have to fly for an airline to get cover?
A: No - so long as you have a commercial (or ATP) licence or a Flight Engineer's licence and you are a financial member of NZALPA or the Aviation and Marine Engineers' Association .
Q: Is there an age restriction?
A: Yes - On first application the member must be aged 50 years or under (if you are over 50 but have been on Leave Without Pay you may apply to rejoin the fund). Q: Is the cover I can apply for dependent on my age?
A: Yes - from age 55 to 60 the level of available cover reduces (age 56 = 80%, age 57 = 60%, age 58 = 40%, age 59 = 20% and no cover is available over the age of 60) Q: Is there a maximum and a minimum cover can I apply for?
A: The maximum cover available is 4 times the gross basic salary (as a pilot) or $500,000 whichever is the lower. The minimum cover is $93,750, however, on application a lesser minimum amount may be approved.
Q: What is the difference between GDI and the MBF cover?
A: The MBF was set up in 1972 to provide a benefit for those who lost their medical certificate, and a lump sum for those assessed as permanently unfit to return to flying. It is run by elected Trustees and is administered independently from ALPA. In the event of a disability or sickness that results in loss of your medical certificate; you receive a monthly payment from your capital benefit entitlement. Monthly benefits are calculated on the basis of 90% of your pre-disability income. If you have GDI, the MBF will top up any shortfall to the 90% figure. For members with a permanent loss of their medical certificate, a capital benefit of up to 4 times gross annual salary is payable. A capital benefit entitlement may be paid out if death occurs while in receipt of disability payments.
By also having GDI cover a member who loses their licence may leave their capital benefit the member can receive a monthly income for members so that their Capital Benefit available under the MBF remains untouched.
GDI is a commercially underwritten insurance that is available through NZALPA for members who have lost their licence. Premiums will depend on the level of cover, applicants age and stand down period selected.
http://www.nzalpa.org.nz/AboutUs/Insurance/tabid/88/Default.aspx
(From the NZALPA website: "Group Disability Insurance - A Member may select the level of Benefit required (within certain parameters) and the length of Qualifying Period. The Premium is calculated based on the benefit level, qualifying period and the Members age. A medical declaration may be required under certain circumstances by the Insurer. Should you fall ill and be unable to work the Group Disability Insurance Benefit will ensure you of an income to the level of your selected benefit. This benefit will be paid from the end of your qualifying period until you get your Medical Certificate restored or for a maximum of 24 months. The qualifying period selected by the member can be set at 30, 45, 90,180, or 365 days and is normally chosen to align with the Sick Leave provisions in your Employment Contract") Q: If I have GDI can I also receive income through the MBF?
A: MBF Rules prevent a member from receiving a greater income from all sources than they were receiving prior to the loss of their licence. The MBF may “top up” a member’s income from GDI to the 90% level of their income prior to the loss. Q: If I am on sick leave or receiving ACC can I also receive income through the MBF?
A: The MBF may "top up" a members income to the 90% level of their income prior to the loss is their income from ACC or sick pay falls short of this level. Q: If I make a claim on the fund and am paid a disability benefit what happens to my capital benefit?
A: The capital benefit (if ultimately paid out to the member) is reduced by the amount that is paid out as a disability benefit. Q: What is the subscription level for the MBF?
A:. Currently the subscription rate is $4.00 per $1,000 of cover – so $200,000 cover will cost the member $800.00 per annum. Q: Do I have to pay it all or will my employer pay for my cover?
A: This depends on your employment agreement with your company. In the case of Air New Zealand and subsidiary companies the employer will pay varying levels of contribution to the MBF directly. In the case of some other companies (e.g. Jetconnect ) the employer will reimburse the member once the member contributions are paid.
Q: What is the difference between basic, additional and extra cover?
A: Basic cover is the cover that a member’s employer will pay for (as per that member’s employment agreement) without the member contributing themselves. If the member has no contractual entitlement, any cover purchased will be termed Basic cover.
Additional cover is the amount (over and above the basic cover) that the member can subscribe for and the amount for which the members’ employer may match or fully contribute, depending on the employment agreement.
Extra cover is the cover over and above the basic + additional cover for which the member can subscribe if he wishes to increase his cover up to the full amount of 4 times salary with a maximum of $500,000
Q: What medical information do I need to provide? A: On application the member must fill in a medical declaration, similar to that which is made for your licence medical. Q: Who sees my medical information?
A: The information you provide is treated in strict confidence and will only be viewed by the Trustees and administrative staff of the fund and any medical specialists that may be used in order to review and assess applications and claims. Q What is an exclusion?
A: An exclusion is a pre existing condition that exists on the member’s application for cover to the fund. The Trustees of the Fund may, on medical advice, elect to grant cover to the member but subject to an exclusion for that and related conditions.
Q: If I have been subject to a particular exclusion what happens if my condition improves? A: The Trustees will review any application by a member to lift an exclusion and seek medical advice in this process.
Q: What happens to my cover when my salary increases?
A: If this happens the member can apply to increase cover. Q: If I have had a specific illness or injury am I precluded from applying for cover?
A: No – however the Trustees may, on medical advice, apply an exclusion on medical advice relating to the illness or injury if it is deemed to be likely to recur. Q: Once I am a member of the fund - what happens if I have an illness or injury?
A: If the illness or injury has resulted in the suspension of your medical certificate then refer to the flowchart for the claims procedure. Q: Will the illness or injury affect my future or my existing cover? A: Your current cover is not affected but it may affect future applications to increase cover - an exclusion could be applied.
Q: How long do I have to notify the fund following an event which may or has resulted in the suspension of my medical certificate? A: 90 days - an email is sufficient but it should be in writing.
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