One of the most discussed topics among the banking aspirants is “Which is exam is better for career prospects - Life Insurance Corporation of India’s assistant administrative officer (LIC AAO) or bank probationary officers (PO)?” Since both the exams have a similar pattern, an aspirant generally attempts both.
This article puts forward a few crucial facts which can help a candidate make a career choice. We will be discussing the salient features of both of these exams as well as the differences in the job profiles, salary, perks and promotions.
1. Nature of the industry
As we all know, banks are for saving and borrowing money (as loans) and helping industries with capital. On the other hand, LIC provides life insurance to the policy holder.
2. Exam pattern
IBPS (Institute of Banking Personnel Selection) conducts both the IBPS PO and LIC AAO Exams and hence the pattern and level of both the exams are similar. The GK section of LIC might have a few questions from the insurance sector. There is a separate exam for PO posts at SBI (State Bank of India), which is conducted by IBPS as well.
LIC AAO is primarily an administrative job with various other responsibilities such as interacting with clients, managing databases, underwriting, brainstorming on new policies and schemes.
Bank PO is an administrative job as well with the added responsibilities of managing customer accounts and cash transactions, clearing payments to employees, issuing cheques and demand drafts, making official announcements etc.
3. Working hours
LIC has five days/week work pattern and hence you get two weekends to yourself. On the other hand, bank employees only have the second and fourth Saturdays as holidays.
4. Work pressure
Work pressures in LIC might not be very high as AAOs are not expected to interact with prospective customers to bring more business to the corporation (that’s the job of an LIC Agent).
A PO’s work life is more hectic as he or she is expected to engage with prospective customers to bring new customers to the bank.
5. Transfers
When it comes to transfers, both bank PO and LIC AAO jobs are at par as both involve transfers in (three to five years). An LIC AAO job, however, has an advantage as most of the LIC branches are located in cities, while a bank PO can be posted at a rural branch of the bank.
6. Salary
A bank PO typically gets Rs34,000 to Rs 38,000 a month (salaries vary from bank to bank). The salary of an LIC AAO is Rs.40, 245 per month (including house rent allowance and city compensatory allowance).
7. Promotions and future prospects
You can expect a promotion within two to three years in a bank PO job, but the same might take a much longer time in case of LIC AAO (five to eight years)
Promotions in banks happen every two to three years in the following scale:
•Bank PO
•Assistant manager
•Branch manager
•AGM
•GM
8. Perks and benefits
LIC AAO provides the following benefits:
1.Defined contributory pension
2.Special allowance for passing actuarial examination
3.Gratuity
4.LTC
5.Cash medical benefit
6.Group mediclaim
7.Group personal accident insurance
8.Group insurance
9.Vehicle loan (2-wheeler/4-wheeler) as per rules.
The following benefits are provided by banks:
1.Contribution pension scheme/new pension scheme
2.Medical aid for self (100%) and for family (75%)
3.LTC
4.Home travel concession/ leave fare concession
5.Concessional interest rates for housing/car/personal loans
We hope that this post will help you to make an informed choice regarding your future career.