LIC AAO vs RRB NTPC: Salary, Job Profile, Work Pressure, Working hours, Transfers, Perks and Benefits, Future Growth and Final Verdict

LIC AAO VS RRB NTPC: Which to choose

Dear MockBankers

Which is the better career option among the two: Insurance or Railways ? The fuel never runs out from this topic and its always up for debate.

LIC promotes Life Insurance, with the motto of ‘Jeevan ke sath bhi, bad bhi’. meaning, its for your lifetime and even years after that. Previously the recruitment processes for both the organisations were different but now LIC, which was established in the year 1956, has started getting on banks recruitment’s turf

On the other hand, Railway which is the largest employer in India have always been in demand. railway offers a wide range of jobs. The recent buzz in the town is about the RRB NTPC exam, where across all the departments, nationwide recruitment is being done.Railway job is a 100 % government job.

RRB NTPC Results Out: Updates here.

Let us now take a closer look at both the profiles:

LIC AAO vs RRB NTPC #1: Job Profile 

LIC AAO: Job Profile

As an LIC AAO you are required to do administrative work, this would include the following

  • Formulating new schemes, inspecting policies
  • Managing and filing claims, client interactions
  • Coordinating with other departments, provide assistance
  • Perform any work specified by department head or administrative Officer.

RRB NTPC: Job Profile

In RRB NTPC , you are required to different type of work as per your post, generally it will be supervision and administrative work and would include the following

  • Operating the signals.
  • Maintaining the accounts of the railway.
  • Working as Guards.
  • Perform any work specified by department.

Click here for all posts job profiles of RRB NTPC.

LIC AAO vs RRB NTPC #2: Work Pressure

Work Pressure:

LIC AAO is a lower level managerial post. After joining you are allotted one/several department and the onus for getting the work done lies on your shoulder. You are taught human resource management, finance, project planning and execution. Scope of work includes underwriting, policy servicing, Marketing, IT, Actuarial, Investment, Audit, etc. One can be deputed to LIC HFL, Nomura, LIC cards, GIC, III, etc. It is a continuous learning curve.

RRB NTPC are non technical posts in the Indian Railway. After joining you are allotted  department as per your merit, and thus you perform the tasks related to that post. You are given an initial orientation cum training. Scope of work includes a lot of variety .It is a continuous learning curve.

RRB NTPC Selection Procedure

Work pressure wise the only differentiating factor is Customer Engagement. As a PO you have to interact/bring in new customers, however in RRB NTPC you are not expected to do that.

LIC AAO vs RRB NTPC #3: Working hours

LIC follows a 5 day work week pattern, enabling you to party/utilize the weekend for productive tasks.

In RRB NTPC, your work schedule will depend on your post and the department , you are working in. It may be a day job, a night job, or anything as per the need of the railways.

LIC AAO vs RRB NTPC #4: Transfers

Both AAO and RRB NTPC are public sector/ govt. jobs, making transfers a necessary evil in this comparison.

The transfers mostly take place every 2-5 years.In both Organisations, transfer is on the basis if seniority/promotion.In LIC, some preference is given to Female employees for transfers.In RRB NTPC, transfer policy is different for different posts.

The plus point with LIC AAO is that most LIC branches are in city as compared to bank (which are also located in rural areas). So if you are an LIC AAO, you will spent most of your time in cities with a decent lifestyle.

LIC AAO vs RRB NTPC #5: Salary

As an LIC AAO you will receive Rs.33 – 35,000/ month.

The LIC AAO salary is under revision after the govt agreed for 15% hike.

So after the revision is implemented, the take home salary of LIC AAO will increase to approx Rs.42 – 45,000/ month.

In RRB NTPC you will receive Rs.21 – 25,000/ month, but, as per your post , you are entitled to allowances ( equal to your salary and sometimes even more).

Also The above salary of RRB NTPC is subject to revision under 7th Pay commission.

LIC AAO vs RRB NTPC #6: Perks and Benefits

LIC AAO provides the following benefits:

  1. Defined Contributory Pension
  2. Special Allowance for passing Actuarial Examination
  3. Gratuity
  4. LTC,
  5. Cash Medical Benefit
  6. Group Mediclaim
  7. Group Personal Accident Insurance
  8. Group Insurance
  9. Vehicle Loan (2-wheeler/4-wheeler) as per rules.

RRB NTPC provides the following benefits:

  1. Dearness Allowance
  2. House Rent Allowance
  3. Transport Allowance
  4. LTC
  5. Cash Medical Benefit
  6. Group Mediclaim
  7. Pension Scheme

So , as per this criteria, both the posts are approximately equal.

LIC AAO vs RRB NTPC #7: Future Growth

Promotions in LIC are a hard thing to come by, since it takes at least 8 years to become eligible for promotion. The scale is:

  • ADM
  • DM
  • ZM

Promotions in RRB NTPC are also a hard thing and not time bound too.As per your post you will be promoted to the next higher level.

  • Assistant Station Master can go upto Divisional Operations Manager.
  • Junior Accounts Assistant can go upto Chief Account Officers/ Financial Adviser
  • Goods Guard can go upto Chief Controller
  • Commercial Apprentice can go upto Senior Divisional  Commercial Manager

So definitely, future wise , both are approximately equal.

LIC AAO vs RRB NTPC #8: Final Verdict

Thus both have their own pros and cons. If you look from salary and personal life and work angle, it is certainly LIC AAO which scores more but in terms of work pressure, it is RRB NTPC which is much better than LIC AAO.  Here’s a list of Pros and Cons of both LIC AAO and RRB NTPC.



  • 5 Day Work Week
  • Limited Workload
  • Urban Postings
  • Good work life balance
  • Zero Customer Engagement
  • Better IT infrastructure


  • Low and long promotion cycles.
  • Less exposure to market conditions.
  • Hence less chances of personal growth.
  • Lower salary than Bank PO

Click here to read LIC AAO Last Week Exam Preparation Booster Plan



  • Limited Workload.
  • No monotonous work.
  • Zero Customer Engagement


  • Low and long promotion cycles.
  • Less exposure to public.
  • Erratic work hours.
  • Lower salary than LIC AAO.
If you have any queries regarding LIC AAO or RRB NTPC, please ask them in the comments section below, we will be glad to answer them for you!

Click here for all information related to RRB NTPC Examination: Job Profiles, Syllabus, Books to Prepare and Much More.

For Preparation Tips and Quizzes on LIC AAO, click here.