LIC AAO vs Bank PO: Salary | Job Description etc. Explained

LIC AAO and Bank PO are often compared with each other by competitive exam aspirants. And why not? After all, both of them are coveted government positions with a number of benefits. It is the commonness of these profiles that aspirants are bound to compare these two profiles. We have compared these two profiles on several important respects like Exam-Pattern, Recruitment, Industry-wise, Salary, Roles & Responsibilities, Working Days, Promotion & Transfers.

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Recruitment

Having seen the trend of the last years, it has been observed that the notification for these jobs came in 2023 and has come in previous years whereas the notifications for Bank PO (including IBPS PO, SBI PO, IBPS RRB PO etc.) come several times in a year.

Exam-Pattern

Just like many other competitive exams, LIC AAO exam is split into two parts: Prelims & Mains which is very much similar to that of Bank PO. Also the fact that the Mains exam of LIC AAO now has 2 extra sections: Insurance and Financial Market Awareness and Professional Knowledge. Morevoer, the English section in Prelims and the descriptive section in Mains are only a qualifying section in the LIC AAO Prelims and Mains exam. Overall, the LIC AAO exam are deemed slightly easier when compared to that of Bank PO.

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Banking Industry & Insurance Industry

Both the banks and insurance company like LIC are financial institutions. If you make it to a banking job you will have to handle a lot of customers. On getting selected as AAO, you may have to circle around insurance aspects and you may have to deliver insurance products, settlement of insurance claims, field visits etc.,

Salary

The maximum basic salary for the officer can be INR 63840 approximately depending upon a number of factors such as the bank you got recruited with, your place of posting etc. On the other hand, the salary of an LIC AAO will be between 60,000 – 65,000 rupees depending on the place of posting and several other factors.

Roles & Responsibilities

The roles & responsibilities of both the profiles LIC AAO & Bank PO are below:

LIC AAO

• To audit and analyze existing policies for misleading facts and errors
• To interact with clients and resolve their queries
• To process claims
• To plan new schemes/policies for the company
• To communicate and coordinate with other departments on issues related to policies, claim, settlements guidance etc.

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Bank PO

• To provide customer services to the people who need assistance in understanding the banking processes
• To deal with the customers and to explain the various benefits of insurance policies, fixed deposits etc
• To perform tasks like collecting cheques, manage clearance of payment, authorize transactions etc

Weekly Offs

This might sound a pretty small parameter to be discussed in this article, but in the long run, it can be an important factor. As we all know, banks are off on 2nd and 4th Saturdays of the month, while in case of LIC it’s a different story. While the important offices such as the headquarters have a 5-day working policy, the remaining offices have a 6-day working policy. However all working Saturdays have a half-day working policy.

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Promotion & Future Growth

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

• LIC AAO
• ADM
• DM
• ZM

In the case of Bank PO, the promotion is a little swift when compared with that of LIC AAO. If everything else is fine, a Bank PO gets the first promotion in 2-3 years. A bank’s organizational hierarchy is below:

• Bank PO
• Assistant Manager
• Branch Manager
• AGM
• GM

Job Location & Transfer

The job location of an LIC AAO is generally in metros, tier-2 cities and towns whereas the posting of a Bank PO can be literally anywhere in India which can be rural, semi-urban or urban areas.

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To Conclude

If you want a steadfast, comfortable career at a good location with all Saturdays as leaves/half-days you can opt for LIC AAO. On the other hand, if the banking sector attracts you and you want to resolve the problems of a bank’s customers, you should go for a Bank PO job. The salary is more or less the same for both jobs. If you want to understand the difficulty level, you can take free mock tests of a majority of bank & insurance exams on our platform.

Wishing you good luck with the pursuit of your dream-job!