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.

About Life Insurance Corporation (LIC) of India
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 www.licindia.in.
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.

ORGANIZATION STRUCTURE OF LIC

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OBJECTIVES OF LIC OF INDIA
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.

ROLE AND FUNCTIONS OF LIC

  • 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.