IRDA vs LIC AAO – Job, Salary, Career Comparison

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IRDA vs LIC AAO – Job, Salary, Career Comparison

IRDA vs LIC AAO Job Comparison: There are a lot of factors which one should keep in mind while making decisions regarding career. There are a lot of opportunities in the Insurance Sector which can be explored only if an aspirant is guided properly. Following our series of comparative blogs, here is the new one on IRDA vs LIC AAO. Both are amazing career options, but which one is best for you? To answer this, we are providing a competitive job comparison between IRDA vs LIC AAO on the basis of salary, job description, career growth, perks and benefits and work environment.

You may also read our comparative blog on LIC AAO vs LIC ADO from the link provided below.

LIC-AAO-vs-LIC-ADO-Job-Description-Comparison Read: LIC AAO vs LIC ADO Job Comparison 

Let us begin our comparison between LIC AAO vs IRDA with job profiles and the type of work they are assigned.

 

IRDA vs LIC AAO – Job Profile & Salary Comparison

Insurance Regulatory and Development Authority of India (IRDA) is an agency of Government of India for insurance sector supervision and development. As the Reserve Bank of India is India’s central banking institution, IRDAI is regulatory body for Insurance sector. IRDAI conducts examination in three phases for Junior Officer Posts.

IRDA Junior Officer Exam (Phase 1)

  • It is qualifying paper which is conducted online. One who qualifies this will be eligible for Phase 2.  
  • The online Preliminary exam consists of 160 marks divided under four sections- Reasoning, English, General Awareness and Quantitative Aptitude and each section consist of 40 questions of 1 mark each.
  • Negative Marking: There will be negative marks for wrong answers marked by the candidates. For every wrong answer marked by a candidate, 1/4 of the marks assigned to that question will be deducted as penalty.

IRDA Junior Officer Exam (Phase 2)

It consists of Descriptive examination comprising of 3 papers- Paper 1, Paper 2, and Paper 3.

Paper 1- English: It consists of the following elements

  • Essay
  • Precis writing
  • Comprehension and Business/Office Correspondence

Paper 2 – Economic and Social Issues impacting Insurance

  • Economic Growth, business cycles and Insurance penetration, impact of age structure on economy, application of utility theory to Insurance premium setting, macroeconomic factors including catastrophes and pandemics that may impact insurers and insurance markets.
  • Financial markets, Financial Institutions and financial services integration and risks arising from interconnectedness. Systemic risk and concentration risk.
  • Economic capital and risk based capital requirements, economic impact of risk transfer arrangements including reinsurance, contribution of Insurance sector to sustainable and responsible development of economy, Insurance Investments in Infrastructure sector
  • Economic reforms in India leading to Insurance sector reforms, Insurance regulation – financial and market conduct regulations, functions of IRDA, role of an Actuary, de-tariffing in India, motor business and Indian experience, changing Insurance Regulations/Laws and FSLRC.
  • Social structure in India, Insurance in rural and social sectors and obligations of Insurers thereto, Indian Micro-Insurance experience, Social security laws and implementation thereof. RSBY – Health insurance scheme for Below Poverty Line (BPL) families.

Paper 3: Insurance and Management

Part 1- Insurance:

  • History of Indian Insurance, principles of Insurance.
  • Risk and uncertainty, pooling and diversification of risk, Indemnity and Insurable interest.
  • Legal foundations of Insurance, basics in Group/Health Insurance/Pensions. Intermediation: role in mobilising savings, evolution of various types and Bancassurance in India.
  • Functions performed by Insurers: Product design, pricing, distribution, underwriting, claims, Investment and Reinsurance.
  • Insurance lines and products: Property-Liability, Life Insurance and Annuities and Health Insurance. Liability risks and Insurance, valuation and Solvency requirements, Specialist Insurance lines in India – Agricultural and Export Credit Guarantee. Reinsurance, GIC of India, obligatory sessions and retention of risk within the Country.

Part 2 – Management: 

  1. a) Its nature and scope.
  2. b) Management Processes – Planning, Organisation, Staffing, Directing and Controlling. role of a Manager in an Organisation.
  3. c) Leadership: The tasks of a leader, Leadership styles, Leadership theories, A successful leader versus an effective leader.
  4. d) Human Resource Development- Concept of HRD. Goals of HRD. Career Planning – Training and Development.
  5. e) Performance Appraisal – Potential appraisal and development – feedback and performance counselling –– rewards – employee welfare.
  6. f) Motivation, Morale and Incentives: Theories of Motivation. How Managers Motivate. Concept of Morale. Factors determining morale. Role of Incentives in Building up Morale.
  7. g) Communication: Steps in the Communication Process. Communication Channels. Oral versus Written Communication. Verbal versus non-verbal Communication. upward, downward and lateral communication. Barriers to Communication.
  8. h) Role of Information Technology.
  9. i) Corporate Governance: Factors affecting Corporate Governance. Mechanisms of Corporate Governance.

Each paper will be of 100 marks, the paper will be descriptive in nature i.e. computer based, to be typed with the help of the keyboard.

Phase 3: Interview

Candidates having the following background like- Actuarial, Accounting, Legal and General can apply for the same.

“Actuary” means a person skilled in determining the present effects of future contingent events or in finance modeling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits recommending rates relating to insurance business, annuities, insurance and pension rates on the basis of empirically based tables and includes a statistician engaged in such technology, taxation, employees’ benefits and such other risk management and investments and who is a fellow member of the Institute. Actuary exam is conducted by Institute of Actuaries of India. (For further information one can check the website: http://www.actuariesindia.org/index.aspx)

Salary of IRDAI Junior Officer: As a IRDA Junior Official one will receive a basic pay of Rs.17,100/- per month in the scale of Rs. 17,100 – 1000 (11) – 28,100 – EB- 1000 (4) – 32,100 -1100 (1) – 33,200 (17 years)

Allowances: Dearness Allowance, House Rent Allowance, City Compensatory Allowance, Grade Allowance.

At present, initial monthly gross emoluments for Junior Officer is approximately Rs. 74,351/- .

IRDA Junior Officer Probation: On selection, the candidates will be placed on probation for a period of one year subject to any extension of such probation; the total period of probation shall be a maximum of two years from the date of joining the service.

LIC AAO

LIC AAO has to deal with paper work only related to policies, claims accounting etc. LIC AAO salary gets around Rs 33000-35000/- per month which is under revision after the Government agreed for 15% hike.

LIC AAO Exam consists of two phase written online examination followed by Interview. The exam will be of objective multiple choice type which will be conducted online. The overall duration for the exam is 120 minutes (2 hours) and it will consist following test-

Test

No. of Questions

Max. Marks

Reasoning 30 90
Quantitative Aptitude 30 90
General Awareness 30 60
Computer Knowledge 30 60
English Language 40
Total 160 300

There will be Penalty for every wrong answer i.e. ¼ marks will be deducted while no penalty for unattempted questions.

Note-

  1. Here the nature of test for English is qualifying and the marks obtained in this section will not be considered for ranking of the candidate.
  2. The candidates are required to clear sectional cut off as well as overall cutoff for Interview call.

Some Major Differences between the two exams:

Features

IRDAI Junior Officer

LIC AAO

Salary

More

Less

No. of Posts

Less

More

Difficulty of Exam

More

Less

Phases of Examination

More

Less

 

So it is observed from the above table that both the examination has some positive as well as negative feature in some or the other way. As far as salary and position is concerned IRDAI Junior Officer is more favorable. But keeping in mind that the number of posts is less as well as the difficulty level of exam is also more one should start preparing.

In terms of work, salary, and personal life LIC AAO is better option as compared to IRDAI JO but for some IRDAI JO is all about power, authority and fulfillment.

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