LIC AAO vs Bank PO – Salary, Career, Job Profile Comparison

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This topic is still up for debate. Which one is a better career option? Insurance or Banking?The Insurance and Banking Sector has grown ten-fold in the past decade. Candidates show keen interest in both sectors which has escalated the comparison between LIC AAO and Bank PO.   

For all those who are still confused about LIC AAO and Bank PO, please read this article carefully as we’ll compare LIC AAO and Bank PO in terms of salary package, job description, career prospects, work environment etc. This might help you decide which one to pursue – LIC AAO or Bank PO. 

 

LIC AAO vs Bank PO – Job Profile Comparison

LIC-AAO-vs-Bank-PO-Compare-which-one-is-better-salary

LIC AAO or Assistant Administrative Officer works in the Insurance Sector. The duties or job role of an Assistant Administrative Officer mostly revolve around the administrative aspect of Insurance. It is basically a desk job and involves minimal work on foot. Here is a detailed account of the various job duties an LIC AAO need to perform.

  • Managing and Filling Claims and Settlements.
  • Interacting with Specific Clientèle.
  • Inspecting existing policies for errors or misleading fact.
  • Devising new schemes for the company to either replace an existing one or strengthen it.
  • Coordinate with other departments in issues related claims, settlements, policy revision, guidance etc.
  • Travel, if need be, to specific areas if duty calls.

In order to get hired as an LIC AAO, a candidate needs to qualify in LIC AAO Examination. It is a Computer-Based Test followed by an Interview of short-listed candidates. 

Bank PO or Probationary Officer works in the Banking Sector. Here, the term ‘Probationary’ signifies that the recruited candidate will be working on a number of tasks over a period of 2 years, after which he/she earns a title. Unlike LIC AAO, the job description of a Bank PO is a mile long.

As a Probationary Officer in a Bank, your job role will be

  • Providing customer service to the people who require assistance in understanding the banking processes.
  • Build professional relations with the clients
  • Deal with customers and explain the various benefits of fixed deposits, insurance policies etc.
  • Verify documents for authentication and double-check purposes. 
  • Perform clerical tasks at time like manning the cash counters, collecting cheques, authorize transactions etc.

A candidate gets recruited as a Probationary Officer only after cracking exams like IBPS PO or SBI PO. It has a similar selection criteria as LIC AAO.  

 

LIC AAO vs Bank PO – Salary Comparison

In this section, we will discuss the median salary earned by an LIC AAO and Bank PO. Please refer to the following data table.

 LIC AAO Bank PO
Rs. 17240 – 40,245 per month

 

Rs. 14,500 – 30,758 per month (For Metro Cities)

Rs. 14,500 – 30,448 per month (For State Capital)

Rs. 14,500 – 29,927 per month (For District Level and Rural Level)

For an LIC AAO, the pay scale, benefits and emoluments are explained as follows:

  • The Basic pay is Rs. 17240/- per month in the scale of Rs. 17240- 840(14) –29000– 910(4) –32640, which is currently under revision.
  • Total emoluments 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.
  • 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.

For Bank PO, the salary breakdown differs from place to place. Refer to the data table below to get a clear picture.

Bank PO – Region-Wise Salary Breakdown

Salary Breakdown Metro Level Capital Level  District and State Level
Basic Pay  14,500  14,500  14,500
Dearness Allowance (DA)  14485.50  14485.50  14485.50
Compensatory City Allowance (CCA)  540  375  0
House Rent Allowance (HRA)  1232.50  1087.50  942.50
Total Salary  29525.50  29360.5  28985.5
Final Salary (inclusive of HRA)  Rs. 30,758  Rs. 30,448  Rs. 29,927

As we can derive from the data above, salary drawn by a probationary officer depends a lot of the location he/she is stationed at.

Hence, in terms of pay scale and benefits, a job in insurance sector will be more rewarding than banking. So, in this round of LIC AAO vs. Bank PO, the insurance sector wins.

We now proceed to a very crucial section, the work environment.

 

LIC AAO vs Bank PO – Work Environment Comparison

Both of these job profiles have a number of tasks and duties assigned to them individually.

LIC AAO – Work Pressure & Environment 

Since an LIC AAO is mostly assigned administrative work, he/she needs to complete the daily quota of paper work, which includes filing and double-checking documents related policies, claims, settlements, accounts, etc. Seldom an AAO gets assigned to activities like client and sales acquisition. The work environment is pretty mild and calm unless there is audit session in motion or coming up in a few weeks.

Bank PO – Work Pressure & Environment 

The life of a Bank PO is a little different when compared to an LIC AAO workspace and environment. The job profile of probationary officer includes administrative work and client management. So, a Bank PO needs to perform his/ her daily administrative tasks like savings account opening, cheque clearance, account validation, creating reports and mails, and also meet potential customers and clients for bringing in new business to the Bank. The environment is quite energetic and full of life when compared with LIC AAO work environment.

So, if you are looking for a real challenge, Bank PO should be the way to be.

 

LIC AAO vs Bank PO – Career Growth and Promotion Comparison 

LIC AAO and Bank PO, both are jobs in the public sector. Hence, they share a common attribute – Transfer. In the comparison between LIC AAO vs Bank PO, this is a common feature shared by most of the public sector companies. You can expect a transfer from a branch you are placed in, to the one in new location, every 3-5 years.

But there is a catch. In this race of LIC AAO vs Bank PO, the insurance sector has a leverage. As most of the LIC branches are located in towns and cities, the lifestyle of an LIC employee will not suffer a drastic change. But Bank PO has a number of rural postings, which can be difficult at times.

Now we come to most daunting question – Promotion!

And this is where Bank PO wins!

  • The Banking Policies ensure a steady procedure for promoting a probationary officer at regular time period. The internal promotion sometimes picks up as a faster pace and the PO can move up a scale in less than 4 years.
  • The Insurance Sector follows a non-proactive promotion policy. It might take more than 8 years for an AAO to be promoted to the level of AO.

Hence, in this case, Bank PO might be a better option.

 

LIC AAO vs Bank PO – Final Conclusion 

Our Final Verdict in this comparison between LIC AAO vs Bank PO would be

  • For a better pay scale, peaceful lifestyle and good work location, choose LIC AAO as a career.
  • For a versatile job profile, better learning opportunity and systematic promotion scale, Bank PO should be your preferred career choice.

We really hope this article answered some much needed questions. If we missed out on a few points, please mention those in the comments below.

Also, please suggest the job comparisons you want us to list. We can surely work something out for you.

All the Best. Choose wisely.

 

11 COMMENTS

    • LIC AAO Exam Syllabus 2015 -2016 & Details in English

      1. Verbal:

      Number Series
      Alphabet Series
      Test Of Direction Sense
      Coding-¬Decoding
      Number Ranking
      Arithmetical Reasoning
      Problem On Age Calculation
      Blood Relations, Analogy
      Decision Making

      2. Non¬Verbal:

      Non Verbal Series
      Mirror Images
      Cubes and Dice
      Grouping Identical Figures
      Embedded Figures etc. are some related topics.

      3. Numerical Ability:
      Numerical ability has following quantitative questions

      Number System
      HCF, LCM
      Simplification
      Decimal Fractions
      Ratio and Proportions
      Unitary Method, Percentage
      Time and Distance
      Time and Work
      Profit and Loss
      Average
      Simple and Compound Interest
      Mensuration (2D and 3D)
      Algebra
      Data Interpretation are some related topics.

      4. General Knowledge and Awareness:
      Applicants has to prepares for this paper by keeping updating with news around the world

      Current Affairs (National and International)
      Major Financial / Economic News
      Budget and Five Year Plans
      Sports, Books and Authors
      Awards and Honors, Science – Inventions and Discoveries
      Abbreviations, Important Days
      International and National Organizations are some related topics.
      English Language with special emphasis on grammar and vocabulary

  1. after 5 years of experience with mba in banking and finanace from iibf if someone wants to be an investment banker or switch in to pvt bank then considering this which is better option to join-po or aao ?
    and which have the more opportunity for foreign posting ?
    and if I leave after 5yrs of experience then what are the chances and prospect in a foreign company and what package can one expect ?
    plz reply
    thank u .

  2. Here You discussed a lot in respect of both and in a very good way of explanation. May you please tell us about those extra emoluments a aao and po gets. for ex. Benefits that LIC AAO provides 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.
    I want more information for all these things… actually i don’t understand about all these things ?

  3. You have missed one point,in LIC generally after a few years the officer gets transferred to Marketing which is a very challenging job. Also there is scope for specialisation in zinvestment, IT, Accounts etc

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