LIC AAO Job Profile, Salary and Career Prospects

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LIC AAO Job Profile, Salary and Career Prospects

LIC AAO Job Profile, Salary, and Promotion 

FOR VIEWING LIC AAO RECRUITMENT 2017 DETAILS >> CLICK HERE

LIC AAO Job Profile

Life Insurance Company (LIC) is likely to publish its notification regarding recruitment for Assistant Administrative Officer (AAO) for 2017 batch.

Aspirants always wonder if these Insurance jobs in LIC are as good as jobs in the PO Jobs in the Banking Sector. Since the LIC AAO recruitment notification is likely to come soon, we are receiving received many queries regarding the LIC AAO Job Profile, LIC AAO Salary Structure, and LIC AAO Growth opportunities.

 

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LIC AAO Job Profile, Salary, and Promotion

The LIC AAO exam is conducted by IBPS. The major question among the aspirants now is ‘What is the job profile of LIC AAO’. Before we give the answer regarding the Job Profile of Assistant Administrative Officer in LIC, let us first see LIC as an organization. This will help you get a better understanding of the job role of LIC AAO.

About Life Insurance Corporation of India

LIC is the sole Life Insurer in India that is completely owned by the Government of India.
The Life Insurance Corporation of India (LIC) was founded in 1956.

To make this happen, more than 245 insurance companies & provident societies were merged to create the Life Insurance Corporation of India.

Life Insurance Corporation of India Structure

LIC as an organization has a 4 tier structure and a fifth tier has also been added for micro insurance.

  1. At the top is Central Office, based in Mumbai.
  2. After that, we have 8 Zonal Offices which report to the Central office.
  3. These Zonal Offices are followed by various Divisional Offices at different locations.
  4. The fourth and the most important tier is called Branch Office. If you are selected as an AAO in LIC, you will most probably be working in these Branch Offices Only.

LIC Departments

The Departments in LIC at Branch Level are:

Front End Departments that deal with clients/customers directly.

  1. Sales
  2. New Business
  3. Policy Service
  4. Claims

Back end departments that mainly cater to the needs of employees and ensure smooth functioning of the daily business of the branch.

  1. Accounts
  2. Office Service
  3. IT department

LIC AAO Training

The training of an AAO consists of 9 months of theoretical and practical training at any of the Zonal Training Centre (ZTC).

The training is subdivided into 3 parts:

  • Theoretical training at any of the ZTC where you will be attending classes and will have all benefits like lodging and boarding free of cost
  • Practical Training at any branch office. Each week you’ll go to a different department altogether and learn about everything.
  • You will again be back to your ZTC and you will present whatever you have learned and also you will be given a refresher on whatever you did in previous theoretical training.

LIC AAO Probation

  • A newly recruited AAO will be on probation for one year which is extendable up to 2 years.
  • In addition to this, before joining as a Probationer, candidates will be required to give the undertaking to serve for a minimum period of four years from the date of joining.
  • In case you fail to serve the minimum serving period, then you will be liable to pay damages of Rs.200, 000/-only.

LIC AAO Job Profile

Among all the public sector insurance companies, LIC is the biggest player with crores of policy holders in the form of its customers.

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

  • Formulating new schemes.
  • Inspecting various policies
  • Inspecting existing policies
  • Devising New schemes.
  • Inter-Department Communications w.r.t to schemes and policies.
  • Interacting with Clients.
  • Executing various intangible tasks as directed by Manager. (AO or BM).
  • Filing and Management of Claims and Settlements
  • Coordinating with other departments, provide assistance
  • Perform any work specified by seniors.
  • Interact with Clients and provide them assistance and resolving their queries
  • Inspecting and analyzing currently running policies
  • Claim Processing.
  • Interacting with clients
  • Communicating across departments.
  • Performing other duties, time to time, as specified by your officer-in-charge.

The LIC AAO job profile does not involve traveling extensively but at times, you may have to visit certain areas for follow up & not specifically for sales.

If you are posted as AAO Specialist, you would be posted in a specific department within the organization viz.

  • Finance/Accounts.
  • New Business.
  • Information Technology (IT).
  • Policy Servicing.
  • Claims.
  • Marketing/ Sales.
  • Actuarial.
  • Inspection

LIC AAO job profile 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 the case of his/her absence, an AAO is also given additional or independent responsibility.

LIC AAO job profile 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.

LIC AAO job profile 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 a loan for something.

LIC AAO job profile 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.

LIC AAO job profile Accounts Department

It basically helps in overseeing all the payments made or received and any financial and accounting thing happening in the branch.

LIC AAO job profile Office Service Department

Office Service department deals with personnel matters such as salary disbursement, income tax deduction, billing etc.

LIC AAO job profile IT Department

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

So if you are appointed as AAO – posting could be in specific departments as given above OR as a general officer.

 

LIC AAO Salary

  • The basic pay of an LIC AAO is Rs. 17240/- per month, in the pay scale of Rs. 17240- 840(14) –29000– 910(4) –32640 (Under Revision) and other admissible allowances as per rules.
  • The Gross Salary at the minimum of the scale inclusive of House Rent Allowance & City Compensatory Allowance wherever admissible depending upon the classification of the city will be approximately Rs 40,245/- per month in ‘A’ Class city.
  • While the above pay is inclusive of allowances, your take home/ in-hand salary could be around Rs.33,000/ month.
  • AAO`s are also entitled to PF, pension, LTC, 2/4 wheeler loans, mediclaim, medical benefits & much more.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.

LIC AAO Career Prospects

LIC is one of the biggest players among the Public Sector Insurance Companies. Being an old company, retirements happen every year at the senior level. Hence, new recruits have a better than fair chance to move up.
However, the promotion policy is not very proactive and the minimum time required for being promoted varies from 5-8 years.
Thus there are 2 paths for career advancements:

  1. AAO
  2. Administrative Officer (AO).
  3. Assistant Divisional Manager (ADM).
  4. Divisional Manager.
  5. Senior Divisional Manager.
  6. Zonal Manager and so on.

There are also chances to move to other departments through internal posting based on your performance / Inclination. There you can become

  1. Assistant Branch Manager (ABM).
  2. Branch Manager (BM).

 

Friends this is it for LIC AAO Job Profile, Salary, and Growth Prospects. If you have any question regarding LIC AAO Job Profile, feel free to ask it in the comments section below.

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