LIC AAO Salary & Eligibility Criteria

LIC AAO Salary

LIC AAO salary is one of the major driving forces for candidates applying for the post of Assistant Administrative Officer. It is one of the most sought after posts in the Insurance sector as well.

Life Insurance Corporation is one of the most prestigious insurance companies in India. Getting a job in the company is a dream of many aspirants. The LIC AAO (Assistant Administrative Officer)  post is a sought-after job in the current phase.

The basic pay in the LIC AAO salary is Rs 32,795/- per month. However, there are other lucrative allowances and perks, along with the basic pay in the salary structure.

This article is about the LIC AAO salary structure with information on allowances, perks, and other benefits. Candidates can also know more about the other LIC exams conducted in the country, at the linked article.

There are other government exams which also offer a significant designation, career, and salary.

LIC AAO Salary in India – Structure and Allowances

The LIC AAO Salary in India is the reason for many aspirants to get into the Insurance sector. Apart from the LIC exams, there are various other insurance exams, and to get a detailed list of exams and information regarding the same, visit the linked article.

The LIC AAO Salary details are given below:

LIC AAO Salary 2021
Payscale 32795 – 1610 (14) – 55335 – 1745 (4) – 62315

Basic pay- Rs.32795/-

After Increment- Rs 62,315/-

  1. Dearness Allowance
40% of the basic pay
  1. House Rent Allowance
7%-9%(Location dependent)
  1. City Compensatory Allowance
0% – 4% of the basic pay (Location dependent)

The other benefits, along with the LIC AAO Salary, are given below:

  1. Leave Travel Concession (LTC)
  2. Special Allowance
  3. Gratuity
  4. Contributory Pension
  5. Cash Medical Benefit
  6. Accident Insurance
  7. Loan for Personal Vehicles, etc.

LIC AAO Responsibilities

The basic responsibility of a LIC AAO is to monitor and undertake Administrative tasks under various departments.

The departments that a LIC AAO looks after are as follows:

  1. Inspection
  2. Business
  3. Finance and Accounts
  4. Marketing
  5. Claims
  6. Policy

However, the operations that a LIC AAO has to carry out are as follows:

  1. Supervise the functioning of the assigned departments
  2. Provide assistance to clients and customers as and when necessary.
  3. Research and formulate new schemes
  4. Manage and file claims and settlements

LIC AAO Career Growth

The career growth that happens after the LIC AAO post are given in the order below:

  1. Administrative Officer (AO)
  2. Assistant Divisional Manager (ADM)
  3. Divisional Manager (DM)
  4. Senior Divisional Manager (SDM)
  5. Zonal Manager

Aspirants can expect a generous salary, and other benefits once they get to higher posts by clearing specific exams or fulfilling the necessary criteria

LIC AAO Eligibility Criteria


Life Insurance Corporation of India (LIC) is the leading insurance company in the country. LIC conducts exams for different posts for recruitment to their company. The exams are conducted as per the need and requirements of the insurance company.

Assistant Administrative Officer (LIC AAO) is one of the posts for which LIC holds the recruitment process. The exam is not conducted annually. It is conducted as per the requirement of the employees under the insurance company.

LIC AAO Eligibility

The exam eligibility criteria for LIC AAO is mentioned in the official notification released by the conducting body. The eligibility criteria for LIC AAO 2021 is as mentioned below:

  1. Nationality: Candidate must be a citizen of India
  2. LIC AAO Age Limit: Candidate must have attained the age of 21 years and should not be more than 30 years of age. However, there is age relaxation for candidates belonging to different categories.
  3. Education Qualifications: The candidate must be a Graduate from any Government recognized University.

LIC AAO Eligibility Criteria LIC AAO Requirement
LIC AAO Age Limit The age relaxation for candidates belonging to different categories is mentioned below:
General No Relaxation
OBC 3 years
SC/ST 5 years
Penson with Benchmark Disabilities (General) 10 years
Persons with Benchmark Disabilities (SC/ST) 15 years
Persons with Benchmark Disabilities (OBC) 13 years
ECO/SSCO (GEN) 5 years
ECO/SSCO (SC/ST) 10 years
ECO/SSCO (OBC) 8 years
Serving LIC Employees (Permanent) Further 5 years, apart from the above-mentioned relaxation
Educational Qualifications LIC AAO (Legal): Bachelor’s degree in Law or LLM from a recognized Indian University/Institution. Three years of Bar experience is essential.
LIC AAO (Chartered Accountant): Graduate from an Indian University and also should have passed the final examination of ICAI. Candidate should be Associate member of ICAI and should provide with the membership number for verification.
LIC AAO (IT): Graduate with a bachelor’s degree in Engineering in CS, IT or Electronics. Candidates who have a degree in MCA or MSC (computer science) may also apply.
LIC AAO (Actuarial): Graduate from any discipline from a recognized Indian University. Candidate should have passed paper CT1 and CT5 plus 4 or more other papers of the exam conducted by the Institute of Actuaries of India/ Institute and Faculty of Actuaries, UK. Candidates must also have a membership number for the same.

LIC AAO (Rajbhasha): Post Graduate Master’s Degree in Hindi/Hindi translation with English as one of the subjects at Bachelor’s Degree level


Post Graduate Master’s Degree in English with Hindi as one of the subjects at Bachelor’s degree level


Master’s degree in Sanskrit with Hindi and English as a major subject in graduation

LIC AAO Selection Process

The candidates who fulfil the eligibility criteria for LIC AAO exam can apply for the exam online. The selection process for LIC AAO exam has changed since the last time it was conducted.

The addition of one extra stage is due to the increase in the number of candidates applying each year.

The LIC AAO recruitment 2021 shall have a slightly different selection process. The selection process now includes four stages:

  1. Preliminary Exam: This is the first stage of the exam. This is an objective type paper which has 100 questions and is only qualifying in nature.
  2. Mains Examination: The mains exam is the second stage of the selection process in LIC AAO. Candidates who qualify the preliminary exam are called for the mains exam. Marks scored in this exam are used to calculate the final merit required for the selection of candidates.
  3. Interview: This is the third stage of the selection process. The candidates who qualify the mains exam are called in for this stage.
  4. Pre Recruitment Medical Exam: Once the list of the selected candidates is released, they have to undergo a pre-recruitment medical examination. If the candidate is found to be medically fit, he is given the appointment letter.

The final merit is declared based on the marks scored by the candidates in the mains exam and interview.

Probation: Candidates applying for LIC AAO 2021 recruitment shall be appointed on probation of 1 year. This probation period may be extended up to 2 years. The candidates need to know that until the probation period is over, they will not be a permanent employee of the company.

Candidates can get details about the LIC AAO salary at the linked article.

Guarantee Bond: The candidates who are finally selected for the post of AAO in LIC are supposed to sign a bond with the insurance company, stating that the candidate needs to serve the company for a minimum of 4 years. If the candidate fails to do so, he/she may be liable to pay Rs.5,00,000 to Life Insurance Corporation of India.

The exam pattern for LIC AAO is as mentioned below:

LIC AAO Exam Pattern
LIC AAO Exam Syllabus Number of Questions Marks Duration
Preliminary Exam Quantitative Aptitude 35 35marks 20 minutes
Reasoning Ability 35 35 marks 20 minutes
English Language with special emphasis on grammar, vocabulary and comprehension  30** 30 marks 20 minutes
Mains Exam (CA/Actuarial/Rajbhasha/IT)  Reasoning Ability 30 90 marks 40 minutes
Insurance and Financial Market Awareness 30 60 marks 20 minutes
General Knowledge, Current Affairs   30 60 marks 20 minutes
Professional knowledge   30 90 marks 40 minutes
English Language (Letter Writing & Essay) 2 25 marks 30 minutes
Mains Exam (Legal) Reasoning Ability 30 90 marks 40 minutes
Professional Knowledge 30 90 marks 40 minutes
General Awareness, Current Affairs 30 60 marks 20 minutes
Insurance and Financial Market Awareness 30 60 marks 20 minutes
Legal Drafting for AAO 2 25 marks 30 marks
Interview   60 marks

**The LIC AAO prelims exam is of 70 marks as the English language section is only qualifying in nature and marks scored in this section shall not be calculated in the final marks. For books please check .

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