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VLF – FAQ

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1. As a member of VLF and in the event of a temporary loss of an Australian Class 1 Medical, can I be made to perform work other than flying duties in order to satisfy the definition of 'Temporary Total Disability'?

No. The terms of the VLF PDS state “an inability to work in any undertaking usually performed for wages or profit.” The word “usually” refers specifically to flying duties only.

2. Does VLF have provision for a lump sum payment to members?

Yes, the VLF Board has discretion to award the Total Permanent Disability Benefit at any point in time to members. This applies to all members, not just those under 40 years old.

3. What offsets are there under the VLF?

The only offsets under the VLF are:

Workers compensation schemes;
Statutory compensation, pension or similar schemes;
Income benefits from other policies of insurance, mutual funds and/or superannuation trustee(s); and
Any employer funded sick leave payments or other employer funded benefits.

VLF will top up any offset payments to reach 95% of your EBA base salary.

4. How do I join VLF and subscribe to the VLF LoL Protection?

Existing VIPA members are automatically eligible for membership to VLF and will only by charged a pro rata contribution amount. All you need to do is submit the online VLF Application and VLF Health Questionnaire.

5. What if I am not a VIPA member?

Pilots who want to join VIPA and VLF must firstly apply to join VIPA then complete the VLF Application and VLF Health Questionnaire.

6. What is the cost of VLF LoL Protection?

VLF members from Virgin Australia, VARA, Tigerair and VANZ can contribute different amounts and receive different levels of Protection. The maximum contribution to the VLF in the 2019-20 Protection Year is $2,924.35.

For the full table with details of cost and Company reimbursement, view VLF – LoL Protection.

7. How do I pay for VLF LoL Protection?

EBA negotiated contributions are paid directly on your behalf by Virgin Australia, for Virgin Australia Narrow Body, Wide Body, VARA, Tigerair and VANZ pilots. VARA or Tigerair pilots wishing to top up their VLF LoL Protection will be invoiced the top up amount by VFS directly.

VANZ Pilots:
Virgin Australia Airlines New Zealand Crewing & Employment EBA Amount: NZD2,655
Your Loss of Licence Protection Limit will be calculated at the agreed exchange rate.
Please contact VIPA Financial Services to discuss your required LoL Protection Limit.
Please note VLF Protection limits are in Australian dollars.

8. How much can I claim back from the Company for my Loss of Licence Protection?

The annual limit for reimbursement is listed in the EBA and will vary each year. The reimbursement amounts for the 2019-20 Protection Year are:
Virgin Australia Narrow Body – $2,924.35
Virgin Australia Wide Body – $2,924.35
VARA – $1,415.23
Tigerair – $1,967.00
VANZ – NZD2,655 or 1.5% of base salary.

9. Is there any refund of contributions if I get to retirement and have not made a claim?

Not at present. VIPA believes in utilising available resources to provide the best possible benefits to members when they need them.

10. Why do we focus on Temporary Loss of Licence?

You are more likely to temporarily lose your ability to fly, rather than permanently. In this scenario, you would likely not qualify for a lump sum payout but would rely on the monthly payments provided by the Fund. Therefore we have developed a benefit that provides excellent temporary loss of licence – 95% of your base salary per month.

11. Why is the Protection Benefit the same for all pilots at the maximum contribution level of $2,924.35?

VLF LoL Protection is simple and fair. It offers the maximum benefit regardless of age, fleet, rank or salary up to the age of 65 years.

12. What is the difference between Loss of Licence Protection and Income Protection? Should I have one or the other, or both?

Loss of Licence Protection provides you with a benefit to enable you to regain your health to a point where you can continue flying, or provide you with the means to retrain into another vocation. Income Protection insurance provides you with a secure income stream at a guaranteed level into the future should you no longer be able to work as a pilot. Both are important, and many financial planners recommend that you take out both types of Protection to ensure you can meet your present and future financial needs. You should see a financial adviser to discuss your individual situation.

13. I have Sunsuper Income Protection insurance which covers my income for the first two years. Do I still need this insurance if I have VLF LoL Protection?

VLF LoL pays you up to 95% of your salary for up to 2 years, followed by the balance of your nominated level of Protection should you still not be able to attain an Australian Class 1 Pilot Medical. Contact VFS or your financial adviser to discuss whether you still need the Sunsuper Income Protection.

14. What is the VLF Aggregate?

The VLF Aggregate is the sum of member contributions used to pay LoL claims and generate better benefits for members.

15. In terms of the definition of 'bodily injury', what does 'caused by an accident' mean?

‘Caused by an accident’ is defined on page 11 of the VLF PDS. It refers specifically to any complications that arise from medical or surgical treatment that was deemed necessary as a result of an injury or illness. What does this mean? It means that if you suffer an illness or sustain an injury and medical treatment creates further complications, you are still covered by VLF’s LoL protections.

16. Will I automatically be rolled over into the new Protection Year if I do not let VLF know I want to cancel by 31 March each year?

Yes. VLF members can opt out between March 1 and March 31 of each Protection Year.

Disclaimer

This information is for illustrative purposes and general in nature. It has been prepared without taking into account any of your objectives, financial situation or needs. You must therefore assess whether this product is appropriate for you, in light of your own individual objectives, financial situation or needs. It is advisable that you obtain professional financial advice before making any decisions. Examples do not take account of your individual tax situation. You should seek advice from a qualified professional regarding taxation. You should obtain a Product Disclosure Statement in respect to the product prior to making any decisions to acquire this product. VIPA is not an insurance broker or adviser and the information in this document and/or on the VIPA website are provided for the information of members only. VIPA does not accept responsibility for any loss, expense or liability which you may incur from using or relying on the information in this brochure/flyer. VIPA does not accept liability for any decisions made by any person in relation to this insurance product.

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