MUTUAL BENEFIT ORGANISATION
An ALPA-S initiative to care for and support fellow pilots.
The ALPA-S MBO is an organization set up to provide benefits for members of ALPA-S who suffer a permanent loss of their Singapore flying licence, or dies. it is an organization, by pilots, for pilots.
MBO membership is confined to financial members of ALPA-S who earn their livelihoods in the capacity of airline pilots flying for an SIA group of companies, or another scheduled air carrier if on VNPL, subject to the approval of the committee.
Membership coverage may be retained up to before age 65.
A joining deposit is payable upon joining. subsequently, monthly subscription will be through the preferred arrangement with Diners Club Singapore, subject to changes by the committee to mitigate loss experience.
Members who have been temporarily grounded due to medical reasons must take all reasonable steps and undergo treatment or surgery as prescribed by their medical experts to regain the required standard for the reinstatement of their Singapore flying licence.
MBO ORGANISING COMMITTEE
Capt. Alex Chan Leong Hai
Capt. Gan Ee Kiat
SFO Chia Shaoqiang, Jeremy
Capt. Aik Sing Yeow
Capt. Ng Thim Fook
Capt. Ganeish Hari Ram
Capt. Sugirtharaj Arnold Stanis Tony
TERMS AND CONDITIONS
APPLICATION AND ACCEPTANCE
Conditions for Application and Acceptance of Membership
Application to join the MBO must be in writing on the prescribed form.
A Health Declaration Form and copy of Flying Licence must accompany application.
Payment of Joining Deposit of $1080.
Joining Deposit is refundable upon resignation or retirement from the MBO. Conditions apply.
Monthly subscription via the preferred arrangement with Diners Club Card, Singapore.
Alternatively, yearly cheques to be deposited at the MBO office by 01stof January, without exception.
Exclusions shall apply for applicants who have a current exclusion from any LOL Insurance, or have a medical condition that may lead to a claim.
Upon acceptance, effective date shall be the first day of the following month after date of acceptance.
If you are under suspension of privileges to your Singapore Class 1 Medical Certificate, you shall not be accepted into the MBO.
Acceptance of your application shall be subject to exclusions, if any, as imposed by the Management Committee.
If you make fraudulent claim, false or incomplete statements in the application for membership, or conceal material facts relating to a claim or application for membership, you shall not be entitled to any benefit from the MBO. Your membership shall be terminated and you shall not be entitled to any refund of any contributions made to the MBO.
Applicants will be eligible for 1/3 of the full Capital Benefit until their next successful renewal of their Singapore Class 1 Medical Certificate and Flying Licence, when the full benefit will apply. Applicants who have successfully undergone their Class 1 Medical examination within 3 months prior to their date of approval shall be eligible for the full Capital Benefit.
Who Qualifies As A Beneficiary
As defined in the Mutual Benefit Organisations Act, a beneficiary must be one of the following:
Wife, husband, children, father, mother, brothers, sisters, grand-parents, grand-children, sons-in-law, daughters-in-law, uncles, aunts, nephews, nieces or wards of a member.
A member may nominate any other person in writing, signed by himself/herself in the presence of and attested by a Justice of the Peace or Magistrate or the Registrar.
TERMINATION OF MEMBERSHIP
Conditions for Cessation of Membership
You may voluntarily withdraw from membership of the MBO by giving written notice to the Committee. You membership shall cease at the end of the following month of receipt of such notice by the Committee.
Your membership shall also be terminated in the event you resign from ALPA-S or upon retirement or upon reaching age 65.
Under the above conditions, the MBO shall refund you the Joining Deposit of $1080. Any subscription in arrears shall be recovered from the Joining Deposit.
Your membership shall also be terminated automatically if you:
become an un-financial member of ALPA-S;
are expelled from ALPA-S;
fail to pay your monthly subscription for 3 months. No benefit is payable from the date your first subscription became due;
received Capital Benefit from the MBO;
cease to qualify as a member (see Who Are Eligible to Join the MBO);
make a fraudulent claim, false or incomplete statements in the application form or conceal material facts relating to a claim or application;
contravene any of the provisions of the Act or Rules of the MBO, or act in a way detrimental to the interests of the Organisation.
Under the above conditions, no refund of any monies, including the Joining Deposit
shall be payable.
How your disputes can be resolved
Any expelled member of the MBO may appeal to the next General Meeting, which may reverse the decision of the Committee, if not less than two-thirds of the members present and voting at the meeting so decide.
All disputes between a member and the MBO or an officer of the MBO shall be referred to the decision of the Management Committee. . The decision so given shall be binding and conclusive on all parties without appeal, and shall not be removable to any court or restrainable by injunction; and application for the enforcement thereof may be made to a District Court.
If all parties cannot agree on the settlement of dispute, they may, by consent, refer the dispute to the Registrar in accordance with Section 36 of the Mutual Benefit Organisations Act.
Applicants must fulfill the following criteria
You are a Financial Member of ALPA-S
You hold a valid Singapore Class 1 Medical Certificate
You hold a valid Singapore Flying Licence issued by CAAS
You are within 2 years from your date of appointment to Junior First Officer Grade (A320/A319), First Officer Grade or Second Officer Grade
You are less than 55 years old
You are within 2 years of your joining date if you are a Direct Entry Captain or Direct Entry First Officer, and less than 55 years old
You are actively employed by an SIA Group of companies*
You are a Singapore citizen or Singapore Permanent Resident or you live in Singapore
*You must meet all the above requirements to remain a member of the MBO, or serving a period of VNPL or CNPL and flying for a scheduled air carrier on a full-time basis, subject to approval by the Committee. Whilst on VNPL or CNPL, you must also maintain a valid Singapore Class 1 Medical Certificate, a valid Singapore Flying Licence and remain a Financial Member of ALPA-S
If you had suffered a removal of privileges of your Class 1 Medical Certificate, and have since regained such privileges, you may apply for membership in the MBO, subject to exclusions imposed by the Committee.
MBO shall not be liable for Loss of Licence or Death in the following conditions
You commit, or attempt to commit assault, battery or felony
You commit suicide within the 01st year of joining the MBO
You engage in acts of terrorism
You engage in naval, military or air force operations of an offensive nature, except for peacetime military training and exercises for full time servicemen and NSmen
Your pregnancy, childbirth, miscarriage or complications arising from these
You contract any Sexually Transmitted Diseases, Acquired Immune Deficiency Syndrome or Human Immunodeficiency Virus Infection from sexual activity or non-prescribed drug use
You are an alcoholic, drug abuser or glue sniffer
You engage or train for sports in a professional manner
You engage in an event requiring vigorous training and activities not normally expected of a normal person in pursuit of leisure activities
You suffer an illness or disability for which you had previously made a claim for the removal of privileges to your Class 1 Medical Certificate
You made a false statement, concealed material information relating to your application for membership in the MBO, or you make a fraudulent claim
Benefit payable upon Permanent Loss of Licence or Death (wef 24 Jan 2017):
< 60 - $330,000
60 < 61 - $275,000
61 < 62 - $220,000
62 < 63 - $165,000
63 < 64 - $110,000
64 < 65 - $88,000
If the total Capital Benefit payout for the year reaches 80% of the opening balance in the Benefit and Reserve Fund, the payout will revert to a monthly payout of $10,000 until the obligations of the MBO are discharged.
At the end of the fiscal year, any balance remaining from the total contribution for the year shall be paid to all members receiving monthly Capital Benefit in multiples of $10,000 until the full obligation of the MBO is discharged.
Any arrears owing shall be carried forward to the following year.
All claims must be evidenced with a letter from CAMB in the case of a removal of privileges to a Singapore Class 1 Medical Certificate, or a Death Certificate in the case of death of a member.
1. CAN I JOIN ANOTHER LOL INSURANCE WHILE BEING A MEMBER OF THE ALPA-S MBO?
Members of the ALPA-S MBO may join other commercial insurance if they so choose. They must take cognizance of the limitations and exclusions of the commercial offerings.
2. CAN PILOTS FROM SILKAIR, SIA CARGO, SCOOT AND TIGER JOIN THE ALPA-S MBO?
As long as a pilot is a financial member of ALPA-S and meets the joining criteria as spelt out, he/she is eligible to apply for membership in the ALPA-S MBO. In fact, there are already several pilots from Scoot who are members of ALPA-S and the MBO.
If the pilot is not a member of ALPA-S, he/she may apply for membership in ALPA-S. Upon confirmation of his/her membership in ALPA-S, he/she may then apply for membership in the ALPA-S MBO.
3. THE ALPA-S MBO IS A NEW ORGANIZATION. WILL IT FACE START-UP PROBLEMS AND ISSUES THAT MAY DERAIL ITS SUCCESS?
The Rules of the ALPA-S MBO has taken 13 months to evolve, from a simple proposition to its current form. It has also gone through 5 revisions with the Registrar of Mutual Benefit Organisation to ensure clarity and consistency, as well as viability.
Every possible scenario has been thought through, discussed and committed into the Rules.
Suggestions and comments have been solicited from members. Despite vigorous challenges, the concept and Rules have withstood the test.
The Registrar is satisfied that the ALPA-S MBO is robust enough to be registered. Shouldn’t you agree as well?
4. CAN THE ALPA-S MBO BE BANKRUPT BY MORE THAN EXPECTED LOSSES?
The ALPA-S MBO has in place contingency plans in the event the total yearly payout reaches 80% of the opening balance in the Benefit & Reserve Funds.
Once this limit is reached, payout will revert to a monthly payout of $10k for all loss events thereafter. At the end of the financial year, any funds remaining will be used to meet the obligations of the ALPA-S MBO. Any arrears will be carried to the following year until all the obligations of the ALPA-S MBO have been discharged.
To mitigate loss experience, the monthly subscription may also be adjusted to keep the ALPA-S MBO viable. The monthly subscription will not exceed $150, if at all.
5. WHAT IS THE DIFFERENCE BETWEEN COMMERCIAL PREMIUMS AND ALPA-S MBO SUBSCRIPTION?
The object of a commercial entity is to make a profit. Over 10 years, NTUC Income has generated almost $5m in profits from ALPA-S. Their premium was raised by 60% in 2012/2013, netting a profit of $1.4m! Insurance premiums will not come down. We will be subject to premium increases at their will.
Experience with other insurance providers, have shown that premiums will only increase, never the other way. In the 1990s, NOALL Loss of Income Insurance for Professionals offered an income protection plan at reasonable premiums.
After 2 years of operations, premiums shot up by between 300% and 1000%, effectively denying anyone of any coverage. OCBC’s PayCare Loss of Income Insurance was on offer for only a few short years, after which, it was withdrawn from the market. IFALPA sponsored LOL Insurance also saw hefty increases in premiums, forcing many pilots not to renew.
Annual subscription of the ALPA-S MBO is expected to reduce substantially, with further savings, within 2 years of operations, provided the loss experience is within expectations.
6. WHAT IS THE ADVANTAGE OF CHOOSING THE ALPA-S MBO OVER OTHER COMMERCIAL OFFERINGS?
The ALPA-S MBO can offer members the same level of benefit at a lower subscription. It also offers older pilots above 58 years old, better benefits than commercial Insurers. The joining age limit is also lower than some commercial insurers. Higher benefit up to $500k is possible without any increase in subscription under the ALPA-S MBO, provided the loss experience is within expectations and the Benefit Fund builds a healthy balance.
Members who have suffered a temporary grounding have found the 2% monthly benefit from the Company’s in-house LOL insufficient. A Disability Benefit that pays a monthly benefit will be introduced to provide for members who are under temporary grounding. This facility is not available with commercial insurance offerings.
7. CAN PILOTS ON VNPL APPLY FOR ALPA-S MBO MEMBERSHIP?
Pilots on VNPL must meet the eligibility criteria and be actively employed as a pilot with a scheduled air carrier, subject to approval by the Management Committee. They must also maintain a valid Singapore Class 1 Medical Certificate and valid Flying Licence issued by CAAS.
8. IS THE ALPA-S MBO PART OF ALPA-S?
The ALPA-S MBO is an independent organization registered with the Ministry of Culture, Community and Youth, and governed by the Mutual Benefit Organisation Act. It exists to provide benefits to members of ALPA-S.
9. SINCE IT IS NOT UNDER ALPA-S, WHY MUST MEMBERS OF THE MBO ALSO BE MEMBERS OF ALPA-S?
The objects of the ALPA-S MBO is to provide benefits to members, who must also be ALPA-S members, in the event they suffer a removal of privileges to their Singapore Class 1 Medical Certificate, or dies. It was mooted, designed and registered for the benefit of ALPA-S members.
10. WHY DO ALPA-S MBO REQUIRES AN UPFRONT PAYMENT OF A JOINING DEPOSIT, AND A MONTHLY SUBSCRIPTION THEREAFTER?
The Joining Deposit serves to provide seed money to allow the MBO to meet its obligations during the initial startup, and is refundable upon resignation from the ALPA-S MBO, ALPA-S or retirement.
11. IF I AM NOT HAPPY WITH THE RULES AFTER JOINING, CAN I GET A REFUND?
If you resign from the MBO, your Joining Deposit will be refunded. However, your monthly subscription up to the date your membership ceases, is payable.
12. IF I RESIGN FROM THE MBO, CAN I REJOIN AT A LATER DATE?
As long as you leave the MBO in good standing, you may rejoin provided you still meet the joining criteria as stipulated in the T&C.