Updated Jan 2022

ALPA India has successfully completed three years of operations.

ALPA India is a member of IFALPA and stands for welfare of Indian Pilots and is involved in the following schemes for Indian Pilots. 

 ALPA BENEVOLENT FUND 2.0

This presentation is made from the feedback received from the members, trustees of the Professional Aviators Trust and formulated to improve the product that we offer.

Points Raised by members.

1.         This scheme appears too good to be true. A conventional benevolent fund is more acceptable.

2.         Members have to wait for three years for a full financial benefit.

3.         Membership is not open to all pilots viz CPL holders, FOIs CFIs and helicopter pilots.

4.         Sum insured needs to be enhanced.

5.         TMU is not covered.

6.         Cover of benevolent fund to terminate when the pilot attains the age of 58.

7.         Scheme effective from 1^st JANUARY 2022 (B/F 2.0)

Improvement to the Benevolent fund

1.         Some pilots have raised doubts on the sustainability of the scheme, we would like to assure you that the contract with the Trust was made keeping in mind a 10 years’ window and the ensuing cash flows. We will be independent once our membership touches 1000 or earlier as the case may be.

Addressing the feedback we have brought about the following changes.

1.         Members will be insured for ₹ 2.5 Cr from the time he/she pays up the first complete annual -payment of (₹ 72,000/-) presently.

2.         The fund is bifurcated into two sections.

A) Corpus

B) Collectable

3.         The sum insured to go up progressively with the increase in membership i.e., ₹ 3.0 Cr when membership touches 750 and ₹ 4.0 Cr when membership touches 1000. This would remain until the next revision which would be post 2500 members.

4.         TMU is being introduced for all members who have completed a minimum of three years with the scheme and the pay-out of ₹ 80,000/- per month and progressively increased to ₹ 2,00,000/- per month when the membership touches 1000.

The Process and migration.

1.         All pilots availing the benevolent fund currently will be seamlessly moved on to ALPA scheme 2.0. and revised certificates will be provided to each member.

2.         Members would continue the annual payment of ₹ 72,000/- for a period not exceeding 7 years which would go towards the corpus.

This amount would be returned with a simple interest of 6% and to be adjusted according to RBI policy as in force at the time of withdrawal. ie ₹  (72000 x 7 = 504000*6%=30240+504000) = ₹ 5,34,240/- while exiting the scheme, without death or PMU or TMU claim. (interest rate 6% on the total amount subject to RBI rules prevalent from time to time and it is not computed annually).

No annual contribution to the corpus is required post the 7^th year payment.

3.         In the event of a claim, a collection is initiated, and all pilots contribute equally to the claimant. This is the collectable.

4.         The collection can be paid by EMI as well. The collection will not exceed ₹ 20,000/- per month and shall not exceed ₹ 1,00,000/- per year.

5.         The collectable is non-refundable bringing the scheme on lines with a traditional Benevolent fund and it also does not attract any Tax.

6.         All members are required to give an ECS mandate for enabling collection of funds if the need arises.

Comparison

To compare what the pilots are being offered versus what ALPA is offering.

Almost all pilots have been covered by an insurance product either life or loss of licence.

The sum assured is approximately ₹ 2.5 cr.

This is in addition to the Mediclaim insurance which is a separate product.

The average flying life of a pilot is calculated at 25 years This will accommodate the pilots coming from the armed force to civil aviation as well.

In 25 years at an average of ₹ 1,00,000/- (Rupees one lakh) per year, one spends ₹ 25 lakhs.

The number of pilots in India as per DGCA is in excess of 17,000 and approx. 7500 pilots are employed currently in India in Airlines and general aviation.

Therefore, the insurance premiums paid by these pilots are running into crores of rupees.

Given the extra care that pilots take to keep their medical standards, very few claims arise from these covers as can be verified from the claim ratios of all schemes.

This is a dead investment and has to be paid irrespective of claims.

Death due natural causes is never paid.

This means an average pilot who does not make a single claim over 25 years stands to lose 20 lakhs.

The ALPA scheme is a benevolent scheme (Not Governed by IRDA) and is designed to eliminate this loss by returning the money paid towards the corpus with a nominal interest (not to exceed interests declared by the Central Bank).

The calculation is being done with the number of pilots at 1000 only.

ALPA scheme covers you for loss of life and loss of licence due medical. The temporary medically unfit benefit is also being introduced with a cap of ₹ 80,000/- per month. This would progressively increase to ₹ 2,00,000/- per month once the membership touches 1000. This works out to ₹ 200/- per pilot.

Each pilot contributes a sum not exceeding ₹ 20,000/- in case of a claim only otherwise the money lies with the pilot.

Comparison points

1. Insurance is a 100% dead investment.

ALPA returns corpus with an interest in case of no death or PMU claims.

TMU claims to be deducted from final pay-out.

2. Insurances have many exclusion clauses.

ALPA has only one which is death due suicide and PMU due attempted suicide.

3. Insurance premium is a lumpsum payment

ALPA allows easy EMI / Part payments (facilitation charges of ₹ 5000 is applicable)

4. Insurance and benevolent funds offered by airlines are fraught with danger as it has happened with the airlines that run into financial trouble. Jet airways is a prime example.

ALPA is spread across all airlines and not governed by the financial condition of any one airline.

5. The claim process in an insurance is cumbersome.

ALPA it is just a simple form with two other member’s signatures.

6. The current scheme covers pilots incrementally and a pilot has to wait for three years before he qualifies for the full amount.

ALPA 2.0 scheme will cover the pilot from day, he completes first annual premium payment for a sum of ₹ 2.5 cr.

7. We also noticed that the difficulty for pilots above 60 to get a life cover and we intend to ask our insurers for a group term cover specifically for the pilots above 60 years.

Added Features.

Pilots of Indian origin flying with foreign airlines also can avail all benefits including GMC for their next of kin if hospitalisation is in India.

For Pilots of Indian origin, in case of LOL due medical, the PMU claim would have to be whetted to Indian DGCA medical standards with ALPA medical board certifying the PMU.

Pilots above 65 years enjoy complimentary membership for Life if they were existing ALPA members facilitating GMC and term life Insurance.

2. Medical Insurance

ALPA India has tie ups with major insurance companies for a group medical insurance for members

We have negotiated for the best package available in the market. Please contact our office for further details.

Please enroll online here or contact our office on e-mail < info@alpaindia.org>  

 or  mobile # 6362366974.  

On joining ALPA India you will receive a unique id after scrutiny of your application and its acceptance.

This id will be used for all future references including members opting for the benevolent fund.

Your KYC would have to be updated via the website www.alpaindia.org.

About IFALPA.......

1. ALPA India is a member associate of IFALPA which represents 100,000 pilots over 100 countries.
2. IFALPA has a tag line of GLOBAL VOICE OF PILOTS and rightfully so and a cursory glance at their website will show the giant strides they has taken with respect to all aspects affecting pilots the world over.
3. IFALPA also has a seat on the ICAO.
4. IFALPA conducts courses that are available to the member associates at concessional rates like accredited accident investigator, certified negotiator, runway safety etc.
5. ALPA India would directly represent the matters affecting the Indian pilots with DGCA and MOCA.
6. Brief the media on factual factors on the airline industry and the related incidents.
7. Provide legal assistance to pilots in both aviation and non-aviation related matters through a panel of senior counsels across the country.
8. To provide legal assistance internationally through our counsel based in Australia.
9. ALPA India is in negotiations with various insurers to provide the best Cardiac and Cancer cover at the most economical rates.

Technical:

1. We intend to reach a membership base of 3000 pilots.
2. We intend to have at least 50 accredited accident investigators and negotiators.
3. Four regional runway safety teams.
4. BID for a regional conference in INDIA.

Pilot Welfare:

1. Provide medical insurance for members and their families.
2. Cancer and Cardiac cover with direct payout to the member and not to a hospital.
3. OPD insurance for support staff of pilots.
4. Medical loans for cosmetic and dental procedures not ordinarily cover by medical insurers.

Should you have any queries please mail us at info@alpaindia.org and one of us will get back to you at the earliest.

We extend a warm welcome our members and to our nonmember fellow aviators, we hope to
"SEE YOU ON BOARD SOON"
THE ALPA INDIA MANAGEMENT COMMITTEE