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Is LIC AAO a Government Job?

As per the official notification, LIC AAO (Generalist) Prelims exam will take place on February 17, 2023. A lot of aspirants will be applying for the 300 vacancies of LIC AAO (Generalist). Many of the aspirants have the question in their mind if LIC AAO is a government job or not. Can it be compared to SSC CGL or other central government jobs? In this article, we will be answering all your queries related to LIC AAO job. Let’s first know more about LIC.

About LIC

LIC (Life Insurance Corporation of India) is the largest insurance provider in India. It is a state-owned insurance group. The Life insurance Corporation of India was founded on September 1, 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.

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So is LIC AAO a Govt. Job or not?

So, basically LIC is a Public Sector Undertaking in which Government of India has 96.5% stake. Technically speaking, it is not a central government organization. Recently, there were talks of disinvesting the government’s stake in LIC further but there is no news of an LIC FPO coming for at least 1 year. So, a job at LIC AAO will imply working for a public sector undertaking whose complete stake is with the central government as of now. So, the answer is no, it’s not a central government job. It’s actually a public sector undertaking job where LIC has got its own rights through its Board of directors, in terms of service conditions and benefits of the employees.

LIC AAO Salary

Now that you know whether LIC AAO is a public sector undertaking job, let’s have a look at the salary structure of an LIC AAO. The basic pay of an LIC AAO is Rs. 53,600/- per month provided by the corporation in the scale of Rs. 53600- 2645(14) –90630– 2865(4) –102090 and other admissible allowances as per rule. This means the initial Basic Pay of LIC AAO is Rs 53,600 per month. There is an annual increment of Rs 2645 for the next 14 years. Basic Pay after 14 years will be Rs 90,630. Then there will be an annual increment of Rs 2865 for the next 4 years. Basic Pay after the next 4 years will be Rs 1,02,090.

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In addition to the Basic Pay, there are other allowances (mentioned below) which are calculated as a percentage of the Basic Pay based on the location of posting. The total LIC AAO salary is the sum of the Basic Pay and these allowances. Total emoluments of Rs 92,870/- per month will be provided in an ‘A’ Class city at the minimum of the scale inclusive of House Rent Allowance, City Compensatory Allowance etc. The rate of allowances will depend upon the classification of the city.

LIC AAO Allowances

The allowances which an LIC AAO is eligible are below:

HRA (House Rent Allowance): The HRA depends upon the job location. It’s based on whether the LIC AAOs are posted in metropolitan cities, big cities or other locations. The HRA can be 9%, 8% or 7% of the LIC AAO Basic Pay.
CCA (City Compensatory Allowance): This also depends on the job location and can be 4%, 3% or 0% of the LIC AAO Basic Pay.
DA (Dearness Allowance): The DA is revised quarterly on the basis of Consumer Price Index. This component of LIC AAO Salary forms around 40% of the Basic Pay. Since CPI depends upon inflation rates, the DA can increase or decrease accordingly.

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Other than these, an LIC AAO receives other benefits as well which are below:

Leave Travel Concession (LTC)
Special Allowance
Gratuity
Group Mediclaim
Group Insurance
Defined Contributory Pension
Cash Medical Benefit
Accident Insurance
Loan for Personal Vehicles, etc.

LIC AAO Job Responsibilities

The responsibilities & duties of an LIC AAO Specialist Officer are below:

To help the Administrative Officer/ Seniors in supervising the general functioning of the department
To inspect and analyze currently running policies
To plan new schemes/ policies
To process policy applications
To create/ maintain databases
To interact with prospective customers, sales personnel, vendors etc.
To manage claim processing
To communicate across various departments and work with co-ordination
To perform other duties from time to time as specified by officer-in-charge
To negotiate with Agents/Development Officers
To undertake underwriting job at times.

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Career Growth of an LIC AAO Specialist Officer

The first promotion in the case of LIC AAO is generally after 5-8 years of service. The organizational hierarchy is below:

Zonal Manager

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Deputy Manager

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Assistant Deputy Manager

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Administrative Officer

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Assistant Administrative Officer

This is all from us in this article. Sign Up Here & Take a Latest Pattern Free Mock Test of LIC AAO 2022 Prelims. If you have got any input/ feedback for us, please write it in the comments section below.