LIC AAO Job Profile, Salary, Training & Future Prospects/Promotion

117
9308

About Life Insurance Corporation of India. Structure of LIC. LIC Departments. LIC Assistant Administrative Officer (AAO) Training. LIC Assistant Administrative Officer (AAO) Job Profile/Work Nature, LIC AAO Hierarchical Gradation/Promotion.LIC AAO Salary, LIC AAO vs Bank PO.

Job Profile, Salary and Promotion of AAO Officer in Life Insurance Corporation of India.

The AAO exam of LIC conducted by IBPS is around the corner and there have been many questions inter-alia regarding the job profile, major promotional avenues and comparison with banks. The major question among the aspirants is ‘What is the job profile/role of LIC AAO’. Before we give the answer to that we shall first know about LIC as an organisation. This will help you get a better understanding of the role of LIC Assistant Administrative Officer.

About Life Insurance Corporation of India

  • LIC is the only Life Insurer in India that is fully owned by the Government of India.
  • The Life Insurance Corporation of India was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalised the private insurance industry in India.
  • Over 245 insurance companies and provident societies were merged to create the state owned Life Insurance Corporation of India.

Life Insurance Corporation of India Structure.

  • The organisation has a 4 tier structure and a fifth tier has been added for micro insurance later.
  • At the helm is Central Office, based in Mumbai.
  • There are 8 Zonal Offices which report to Central office followed by various Divisional Offices at different locations.
  • The fourth tier is of importance since majority of newly recruited Assistant Administrative Officers will be posted at the fourth tier known as Branch Office and it is here that AAO will be given the independent charge of a particular department.

LIC Departments.

The Departments in LIC at Branch Level are:

  • Sales
  • New Business
  • Policy Service
  • Claims
  • Accounts
  • Office Service
  • IT department.

The first four comprise the front end department which deal with clients/customers directly. The other three are back end departments that mainly cater to the needs of employees and ensure smooth functioning of daily business of the branch.

LIC Sales Department:

The sales department has under its jurisdiction, in a layman term, all agents and Development Officers. Generally an Assistant Branch Manager (ABM), having designation equivalent to an AAO, is the head of the department. However, in case of his/her absence, an AAO is also given additional or independent responsibility.

LIC New Business Department:

This is the department where the agent brings the policy for the first time and AAO will be the authority having full discretion whether to accept any insurance or not. You also have discretion regarding charging extra premium on the basis of non-fulfillment of certain conditions. If you have good relations, you generally waive such things on recommendation of Branch Manager.

LIC Policy Servicing Department:

This is the most important department in the sense that, it really helps the common man. Many times the policy premiums are not paid leading to lapsation of policy or people want loan for something. As an officer, you can really help people in this and fast track the things. It is the busiest of all the departments on all days.

LIC Claims Department:

This department has main work at the end of the month or if any death claim arises. Most of the business of LIC comes in the month end or beginning and thus claims are settled accordingly. However, your vigil and pro-active approach can help you, as an officer in settling things over a period of time as well so as to reduce last minute rush

LIC Accounts Department:

It basically helps in overseeing all the payments made or received and any financial and accounting thing happening in the branch. It is a bit cumbersome and an accounts person is almost the last to leave the office.

LIC Office Service Department:

Office Service department deals with personnel matters such as salary disbursement, income tax deduction, billing etc. Therefore, you are considered the most responsible person in terms of personal benefits.

LIC IT Department:

IT department generally does not have any AAO at the branch level but they do have AAO at divisional office level.

LIC Assistant Administrative Officer (AAO) Training.

The training of an AAO consists of 9 months of theoretical and practical training at any of the Zonal Training Centre (ZTC). One MDC (Management Development Centre) at Mumbai has been closed for AAO training. The training is subdivided into 3 sub parts:

  1. 3 Months Theoretical training at any of the ZTC where you will be attending classes as full salaried employee and will have all benefits like lodging and boarding free of cost
  2. 3 Months Practical Training at any branch office in that zone. Guest houses will be provided to you and each week you’ll go to a different department altogether and learn about everything. Full salary and benefits will be given including meal coupons.
  3. 3 Months Theoretical Training: In this, you will again be back to your ZTC and you will present whatever you have learnt and also you will be given a refresher on whatever you did in previous theoretical training.

After all this, you will be absorbed as an officer and will be sent to any branch on preference and on the basis of the availability of vacancies.

LIC Assistant Administrative Officer (AAO) Job Profile/Work Nature.

The Work of an LIC AAO is centered around executing administrative tasks such as:

  • Devising New schemes.
  • Inspecting various policies.
  • Interacting with Clients.
  • Filing and Management of Claims.
  • Inter-Department Communications w.r.t to schemes and policies.
  • Executing various intangible tasks as directed by Manager. (AO or BM).
  • If you are posted as AAO Specialist, you would be posted in a specific department within the organization viz. Marketing, Sales, Claims etc as specified above.

 

LIC AAO Hierarchical Gradation/Promotion.

There are two branches of LIC personnel department, one is AAO (known as Administration side) and the other is ADO/DO (known as marketing side). Agents are not considered as employees of the organization in terms of they being non-permanent. Both the Administration side and the Marketing side converge at the fourth level of AAO promotion i.e. at DM/MM.

For example, there for DO (Group B), the promotion level is

DO >ABM (Astt Branch Manager) > BM > SrBM (Senior Branch Manager) and convergence.

For LIC AAO (Group A), the promotion level is:

AAO > AO > ADM >  DM and convergence

LIC AAO promotion chart

LIC AAO Salary:

  • As an LIC AAO you will receive a basic pay of Rs. 17240/- per month.
  • The scale of pay is Rs. 17240- 840(14) –29000– 910(4) –32640 (note that this is under revision)
  • You will be entitled to receive other admissible allowances as per rules.
  • The total emoluments after adding allowances at the minimum of the scale inclusive of House Rent Allowance & City Compensatory Allowance will be approximately Rs 40,245/- per month in ‘A’ Class city.
  • Other benefits are Defined Contributory Pension, Special Allowance for passing Actuarial Examination, Gratuity, LTC, Cash Medical Benefit, Group Mediclaim, Group Personal Accident Insurance, Group Insurance , Vehicle Loan (2- wheeler/4 wheeler) as per rules.

 

Comparison between LIC and Banking Industry.

  1. Salary: The “in hand” salary of LIC is much more than what a normal Bank PO gets. Further, even if you take the salary of SBI PO after 4 increments, the salary of LIC is more. Along with that, for first nine months of training, you can just enjoy life as LIC will borne the whole expenditure which is not there in any other bank.
  2. Work Pressure: The pressure in LIC AAO is far far less than any other bank except on month end and beginning and year end. Further, on a daily basis, one may go bome by maximum 6pm and you need not worry about anything. Generally public dealing is done till 3pm and after that many departments are not loaded as such.LIC AAO Job Profile, Salary, Training and Future Growth
  3. Promotion: This is one of the negative points of LIC given the fact that promotions are not based on any exam and not as fast as banks. It takes almost 5-6 years minimum for any AAO to reach AO
  4. Perks: The perks of LIC AAO are not equivalent to other banks. However, you will not feel the same as that is only a meager amount. Further, LIC Employee association is in talks with higher authorities and better perks will be given in a short span of time.
  5. Postings: You’ll most probably get nearby home postings though you will not be able to commute on a daily basis. Certain cases may be there where they will throw you at any far end
  6. Other benefits like good contacts because of large agent base and respect is equivalent to the banks or may be more than that.

HERE IS OUR RECOMMENDATION IF YOU ARE SERIOUS ABOUT LIC AAO PREPARATION.

A comprehensive book specially developed for the candidates of LIC AAO Exam

  • Includes Study Material.
  • Practice Papers (Solved)
  • Detailed Explanatory Answers.

Click here to buy this Book for  Rs. 245/- ONLY 

Copies available till stocks last. Don’t delay else your competitors will buy before you.

Click here to see who wins LIC AAO vs Bank PO.

Suggested Reading

Click here to read Pattern and Syllabus for LIC AAO.

Click here to read how to attempt Reasoning Section LIC AAO.

Click here to read Quantitative Aptitude Preparation Tips for LIC AAO.

Click here to read how to crack English Language section of LIC AAO.

  • Mr Man

    At present gross salary of LIC AAO is rs 50,200/- in class B city + 800/- tea expenses + 400/- paper bill in practical Training
    (Feb/2016)
    this is after REVISION..

    • AMIT CHAUDHARY

      Mr Man
      Thanks for your updated facts.

    • ▁ ▂ ▄ ▅ Xperia ▅ ▄ ▂ ▁

      Heloo Friend.
      Interview total marks? reply me. Hv some more questions to be ask frm u…
      Thkss in advance….

      • Mr Man

        No one not sure about interview marks, becz they haven’t mentioned in mark sheets last year, but it is either 50 or 60, becoz no one crossed more than 48 in our batch

        • ▁ ▂ ▄ ▅ Xperia ▅ ▄ ▂ ▁

          Wt abt min marks?

          • Mr Man

            30 is qualifying marks

          • ▁ ▂ ▄ ▅ Xperia ▅ ▄ ▂ ▁

            Thks Bro. For ur reply
            neerajkmr716@gmail.com
            My mail.. Reply on this mail.

          • ▁ ▂ ▄ ▅ Xperia ▅ ▄ ▂ ▁

            Any tips or suggestions?

    • AbhisheK pAvan @LIC AAO !!!!

      Did yu qualified ?

      • Mr Man

        I am working at present as AAO

        • AbhisheK pAvan @LIC AAO !!!!

          Oh good sir plzz telll me what to prepare fr interview ?

          • Mr Man

            Mostly about current affairs, personal info, nothing regarding insurance, but you better read some basics given by bankers adda,

          • AbhisheK pAvan @LIC AAO !!!!

            ok sir thnku

    • avika Arjun

      When will be the result of aao2016

      • Mr Man

        Results will be in this month.,
        Training may start in July…
        Avika

        • avika Arjun

          Thank u ?…what is your written and interview marks in aao exam

          • Mr Man

            232+31.,
            Final cutoff was 259 for general…

            Hope I will see you in LIC soon …
            All the best Avika 🙂

          • avika Arjun

            Thank u ?…

          • Mr Man

            How many attempts ??

          • avika Arjun

            113/120

          • avika Arjun

            Worried about my accuracy ?

          • Mr Man

            Don’t worry Avika, u will clear it…

          • avika Arjun

            Y result is so late

          • Mr Man

            Coz, we r still undergoing training, our training will be over by June 11th, maybe that’s why u think

          • avika Arjun

            Ur state??am from Kerala ?

          • Mr Man

            Nice place, I am from andhra 🙂
            Arjun is ur father ??

          • avika Arjun

            Ys..it’s god’s own country ?…it is not my real name ? if I selected in lic I’ll tell u the real name ?

          • Mr Man

            Hahahahah, then I will take number too 😉

          • avika Arjun

            Ok waiting for the result??and ur real name??

          • Mr Man

            Rajesh., and yours ???

          • avika Arjun

            If I selected in LIC I’ll tell u

          • Mr Man

            But I told you my name 🙁

          • avika Arjun

            I just asked…ha ha u told me…??

          • Mr Man

            Hmmmm, wts there to hide..

          • avika Arjun

            No problem to tell my name…

          • Mr Man

            Hmmm tell me then…

          • avika Arjun

            R u Rajesh babu…

          • Mr Man

            How do you know ????

          • avika Arjun

            Ha ha?

          • Mr Man

            Okay, you checked the selected list

          • avika Arjun

            Yup

          • Mr Man

            Hmmmmm, 2nd name in the list

          • avika Arjun

            5th name in final pdf

          • Mr Man

            Hmmmm, rajesh babu Kalluri

          • avika Arjun

            My name is also in the selected list 2106
            ..find it??

          • Mr Man

            Tell me your first name, I will find full name like u found mine

          • avika Arjun

            Only one person in that name

          • Mr Man

            Yep, tell me that person’s name

          • avika Arjun

            ??

          • avika Arjun

            That is me

          • avika Arjun

            *2016

          • Mr Man

            Nameeeeeee ?????

          • avika Arjun

            ??

          • Mr Man

            Arey now tell me your name, if u selected give me your number too

          • avika Arjun

            I don’t know Hindi and English…so giving number is not working ? after the result I will tell u my name

          • Mr Man

            We can chat in wts app, no need to talk over calls… Okay leave it then

          • avika Arjun

            Will tell u….am not sure about my result…that’s why

          • Mr Man

            Result is not everything, we can be friends regardless of results….

          • avika Arjun

            Ok..am expecting too much for this result…

          • Mr Man

            Don’t expect anything… Do it prep for other exams….

          • avika Arjun

            Hmm?

          • avika Arjun

            Do u know any update regarding result..pls msg me ?

          • Mr Man

            How can I msg u without having ur numb ???

          • avika Arjun

            Msg here

          • Mr Man

            :p gimme mail, I will mail…

          • avika Arjun

            Hw I msg here??everyone see it

          • Mr Man

            Okay, rajeshkalluri26@gmail.com,
            Mail me there

          • avika Arjun

            My name is there in mail id…?

          • Mr Man

            Arey don’t be child, wt will happen if I knew ur name

          • avika Arjun

            Ok I will mail u

          • avika Arjun

            I msg there ?

          • Mr Man

            I replied there 🙂 n in hangouts too

          • avika Arjun

            Lic Posting is in ur home state or…

          • Mr Man

            Nope yaar, our batch is for j&k state only

          • avika Arjun

            Ok…

          • avika Arjun

            113/120

          • Mr Man

            Good attempts yaar., let’s meet in LIC soon :p

          • avika Arjun

            Thank u for ur wishes…hope u meet in lic..?

          • Mr Man

            Yep, we may meet, who knows ;p

          • avika Arjun

            How is ur training??

          • Mr Man

            It is 9 months training, little boring but u will enjoy it

          • avika Arjun

            Boring…why…??

          • Mr Man

            9 months is too long yaar, it’s like again u r going to college

          • avika Arjun

            like college then y u bored??enjoy…

          • Mr Man

            Classes are repeating. That’s why

          • avika Arjun

            Ohhhhh ?

          • avika Arjun

            During Training Saturday and Sunday is holiday ??

          • Mr Man

            Currently sat is half day, in few months, sat will be holiday

          • avika Arjun

            That is a very good news?

          • Mr Man

            Yep, you will enjoy alot in the training, especially in the last 3 months

          • avika Arjun

            Hmm…waiting for good result

          • Mr Man

            Hope for the best, prepare for the worst…

          • avika Arjun

            Where are u now??training class??

          • Mr Man

            Yep, now class is going onnnn… :p

          • avika Arjun

            Hw many people r there in training cls

          • Mr Man

            Total 30, 3 girls…

          • avika Arjun

            Only 3 girls ?

          • Mr Man

            This was for particular state na, so less girls 🙁

          • avika Arjun

            Ohhhhh ?

          • avika Arjun

            Do u know Malayalam?

          • Mr Man

            Google knows everything ;p

          • avika Arjun

            Google ? LOL

          • avika Arjun

            Do you watch Malayalam movies?one of my friends from AP watches Malayalam movies and songa

          • Mr Man

            I can’t understand Malayalam na, you have to teach me maybe

          • avika Arjun

            Ha ha…i don’t know Hindi…first u teach me…malyalam is very tough language …

          • Mr Man

            Telugu is toughest of all Indian languages

          • avika Arjun

            Nop…Malayalam is the most toughest language

          • Mr Man

            Theek h, Malayalam toughest 😉

          • Mr Man

            And I am also learning Hindi at present

          • avika Arjun

            Ohhhhh

    • Raj

      Meal coupons are also there right?

      • Listener

        Haan ji, rs 170 per working day..

    • ~~~~di@mond~~~~

      hlo sir need a help
      2017 me lic ane ke chances he kya?!!
      plzz tell _/_

      • Name..?

        Even lIC employees can’t be sure about this ji, till LIC release the notification, people spread rumours. Abhi tak no official announcement about this… So I can’t tell about future too…

        • ~~~~di@mond~~~~

          Ohk thanks

  • Z@H!D~LIC AAO&SBIPO

    Salary is already around 50k during training

    • ~~~~di@mond~~~~

      hii sir need a help
      2017 me lic ane ke chances he kya?!!
      plzz tell _/_