Life Insurance Corporation (LIC) of India

Candidates who desire to write the LIC AAO Exam may seldom or often wonder what is the job profile if this is the question then here is the answer. Read through to know in detail the role of an Assistant Administrative Officer; posting, promotion etc.


The LIC is the abbreviated form of Life Insurance Corporation of India. LIC is an insurance as well as an investment company and the headquarter of LIC is in Mumbai, India.

The LIC- Life Insurance Corporation of India was established on 1st September 1956 by the Government of India. The company falls under Financial Sector. The Chairman of LIC is V.K. Sharma and the Managing Director is Usha Sangwan. The Official Website of LIC is
The products of LIC are as mentioned below:

  • Life Insurance
  • Medical Insurance
  • Mutual Funds and Investment Management

The LIC is the largest insurance company in India. Every year it organizes an LIC AAO Recruitment for the Assistant Administrative Officer vacant posts.

The AAO exam conducting body is the Life Insurance Corporation (LIC) and the examination is commonly called as LIC AAO exam which stands for Life Insurance Corporation of India (LIC) Assistant Administrative Officer Exam. The LIC AAO exam is held every year. The AAO Exam is conducted by the LIC to recruit candidates for the Assistant Administrative Officers Post (Generalist/Chartered Accountants/Company Secretary/Legal) in its various branches across the nation.


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The Life Insurance Corporation of India (LIC) was established with the following objectives:

  • To spread life insurance broadly and particularly to the socially and economically backward classes in the rural areas with an intention to reach all the insurable persons in the country and provide them with sufficient financial cover against death at a reasonable cost.
  • To maximize mobilization of people’s savings for nation’s building activities.
  • To provide complete security and promote efficient service to the policy-holders at economic premium rates.
  • To conduct business with utmost economy and with full realization to the policy holders that the money belongs to them.
  • To act as trustees of the insured public in their individual and collective capabilities.
  • To meet several life insurance needs of the community that may arise in the changing social and economic environment.
  • To provide effective and pleasant service with courtesy and involve all the people working in the corporation to the best of their ability to enhance the interest of the insured public.


  • To collect the savings of the people through life insurance policies and invests the fund in various investments.
  • To invest funds in profitable investments so as to get a good return. So that the policy-holders get benefits in the form of lower rates of premium and increased bonus. In a nutshell, LIC is accountable to the policy-holders.
  • It contributes to the shares of companies and corporations. LIC is a major shareholder in a large number of blue-chip companies.
  • It provides direct loans to industries at a lower rate of interest.
  • It provides refinances through State Financial Corporations (SFCs) in different states and other industrial loan giving institutions.
  • LIC has provided indirect support to an industry when they require initial capital through subscriptions to shares and bonds of financial institutions.
  • It gives loans to those projects which are important for national economic welfare such as water channelizing, sewage, electrification, etc.
  • It gives housing loans at a reasonable rate of interest.
  • LIC bridges the saving and investing process. Through various schemes, it generates savings of the small, medium, and rich income group.

LIC AAO Job Profile

Candidates who desire to write the LIC AAO Exam may seldom or often wonder what is the job profile if this is the question then here is the answer. Read through to know in detail the role of an Assistant Administrative Officer; posting, promotion etc.

As the name suggests, the LIC Assistant Administrative Officer (LIC AAO) Job is more of administrative work that may include:

  • Devising new schemes, reviewing policies
  • Managing & filing claims, client interactions
  • Co-coordinating with other departments about a scheme/ policy and provide assistance etc.
  • Perform any other works as & when specified by the department head/ administrative officer

At times, the LIC AAO may have to travel to certain areas (though the AAO job profile does not include traveling widely) for follow up and not particularly for sales

LIC AAO Postings

The LIC AAO may be posted in any of the departments within the LIC as mentioned below.

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

The aforementioned departments work only at Zonal, Divisional & Central Officer levels only.
If a candidate is appointed as an Assistant Administrative Officer (AAO) then he/she could be posted as a general officer or in any of the departments mentioned above.

LIC Assistant Administrative Officer (LIC AAO) Salary

As per the recent LIC AAO recruitment notice, the monthly salary of an AAO is approximately Rs. 40,245 (including allowances) at metropolitan cities. This amount varies slightly in other cities.

After all deduction, the take-home or in-hand salary of an LIC AAO would be roughly Rs. 33, 000-35,300 per month.
Generally, the LIC AAOs are also entitled to PF, pension, LTC, 2/4 wheeler loans, mediclaim, medical benefits & much more.

LIC AAO Career – Promotions and Prospects

The Life Insurance Corporation (LIC) of India is the largest insurance company with crores of policy-holders and assets. Hence to maintain a healthy relationship with the existing policy-holders and to bring new business, the LIC requires a large number of employees along with this the retirements at the senior level every year opens opportunity growth as well as for new recruitments.

The LIC AAO post provides great opportunity in an individual career starting as an assistant administrative officer they can reach to the zonal manager level as given in the below chart.

After few years in the service roughly for 5 – 8 years, an AAO will be promoted as administrative Officer (AO). Also, through internal posting, the AAO has an opportunity to get promoted as Assistant Branch Manager (ABM) in other departments.

The career prospect of an AAO depends on the promotion policies and various parameters set by the LIC of India.