Dear Readers,
With the deadline for applying to NICL AO examination close by (Aug 3), Bankersadda attempts at addressing the queries of our readers with regards to this important examination which is being held as a Common Written Examination (CWE) for Public Sector General Insurance Companies.
Mr. Harish Kher (Senior Trainer at Bank Power Institute) throws some light on the finer aspects of this profile.
Q.1 What is the role of an AO and how does it compare with Bank PO role?
Administrative Role
The role of an AO (generalist) is basically looking after all of different administrative aspects of insurance business. During the training period of one year the trainees will be made to work on different desks in a branch/ divisional office/ regional office. This is basically a supervisory post and the officer work will comprise of being the first level supervisor on the work done by the assistant cadre staff. After checking the work done by the assistant the papers will normally be put up to the seniors (with their recommendations/ comments) in hierarchy for their final approval.
AOs are normally not likely to have any sanctioning authority at this level. Their work will consist of issuing various insurance policies, settling claims, follow up with company lawyers regarding court claims, accounts, monitoring cash receipts, HR matters, general office administration and work relating to Information technology at their office. Once they are promoted they go for marketing of business and guide their agents and development officers who are the main selling force of the company.
Comparable to Bank PO
A bank PO in a public sector bank is more of a passing officer in his initial days and the work will comprise of daily routine passing of checks at branch or through clearing, opening and closing of accounts, bringing new business, monitoring cash, remittance of funds, operating lockers etc. But once he gets promoted to next grade his duties become more specialized in any of the verticals like Loans, Foreign Exchange or Retail banking. There is greater pressure on him to bring and retain new business.
Q.2 What is the role of a Specialist Officer in a General Insurance Company?
Specialist cadres are more likely to remain confined to their respective domains. For example accounts people will remain in areas relating to cash and accounts and law officers to areas dealing with law matters. Most of these specialist officers are likely to be posted in divisional or regional offices as compared to generalist cadres who may be posted in any of the above offices and including branches.
Very good prospects for growth for a Specialist Officer if one is able to clear departmental exams as well as Insurance Institute exams.
Q.3 What are the growth and Promotion Prospects in the General Insurance Industry? Is the Insurance industry comparable to banking in terms of growth?
Insurance Industry -No recruitment for decades
Due to virtually no recruitment of staff in general insurance industry in the last two decades there is going to be big vacuum in the industry particularly higher levels in the next five year period.
Internal Exams will lead to faster growth
So this is an excellent time to join this industry as most of the present day senior management staff is nearing retirement. The Insurance Institute conducts exams which enable the candidates to grow faster. All the companies have internal exams and clearing them give reasonably faster growth opportunities to deserving candidates. Any meritorious and hard working person joining as AO can aspire to become the CEO of his company.
Opportunity to move to the private sector after initial years
Under normal circumstances an AO should go upto Deputy General Manager level which is equal to CGM of a public sector bank. After few years of experience opportunities exist for AOs to shift to private insurance companies also with big salary jumps as well as raise in hierarchy.
Q. 3 What are the expected emoluments (remuneration) in this AO profile?
Emoluments will be more or less same as that of a Bank officer.
Q.4 Which Insurance company is the best to work for?
There is not much to choose as all insurance companies are governed by more or less same rules. People also get transferred from one company to another after reaching certain higher level of hierarchy. However New India Insurance is generally considered favourite by insiders.
Q.5 I am eligible for both Generalist and Specialist profiles which one should I opt for?
A generalist will have greater options to choose and likely to have better career progression. However at the entry level competition may be lesser for a specialist cadre post due to lesser number of candidates. Moreover as mentioned earlier specialist cadre officers are more likely to get posted in bigger stations.
Q.6 What are the benefits of this AO profile which are not available to bank employees?
Biggest is 5 days a week job and second almost No late sitting in the office. There is and approved fixed timing in Insurance companies whereas in banks late sitting is a routine matter and there is no fixed time to close shop. If the salaries in both bank and insurance are same then you work much lesser days / man-hours in insurance companies for the same salary.
Q.7 Will I have to do door to door marketing of policies?
Not really. Generally such work is done by agents and Development Officers. However they may seek your help in dealing with a particular prospective client once in a while.
Q.8 How should I prepare for the exam?
Going by the example of the NICL Insurance Assistant exam you should be prepared for traditional General Knowledge Questions (like SSC exams) and some Higher Mathematics questions like Geometry, Algebra and Trigonometry.
Q.9 What additional Insurance specific preparation I need to do?
It may be required at the time of interview and not at the time of written exam. The candidates while preparing for the written exam should prepare questions like headquarters of all the four companies and their present chairpersons, Headquarters of GIC, Place of National Insurance Academy, Chairman of LIC and IRDA, Difference between life and general insurance. The types of insurance covered by general insurance. Motor Tribunal act. What is re-insurance etc. Rest questions will be more or less on the pattern of normal banking exam. However the paper will not have many baking relating questions like Repo rate or CRR etc. More emphasis is likely to be on current affairs.
Q. 10 is this a transferable job with rural area postings?
Yes it is a pan India transferrable job but there is lesser possibility of rural posting as compared to a bank job where the probability of a rural posting is almost a certainty. Generally people are attached to one of the Regional Offices and stay there for considerable number of years in that Region till their promotion to next cadre.
With the deadline for applying to NICL AO examination close by (Aug 3), Bankersadda attempts at addressing the queries of our readers with regards to this important examination which is being held as a Common Written Examination (CWE) for Public Sector General Insurance Companies.
Mr. Harish Kher (Senior Trainer at Bank Power Institute) throws some light on the finer aspects of this profile.
Q.1 What is the role of an AO and how does it compare with Bank PO role?
Administrative Role
The role of an AO (generalist) is basically looking after all of different administrative aspects of insurance business. During the training period of one year the trainees will be made to work on different desks in a branch/ divisional office/ regional office. This is basically a supervisory post and the officer work will comprise of being the first level supervisor on the work done by the assistant cadre staff. After checking the work done by the assistant the papers will normally be put up to the seniors (with their recommendations/ comments) in hierarchy for their final approval.
AOs are normally not likely to have any sanctioning authority at this level. Their work will consist of issuing various insurance policies, settling claims, follow up with company lawyers regarding court claims, accounts, monitoring cash receipts, HR matters, general office administration and work relating to Information technology at their office. Once they are promoted they go for marketing of business and guide their agents and development officers who are the main selling force of the company.
Comparable to Bank PO
A bank PO in a public sector bank is more of a passing officer in his initial days and the work will comprise of daily routine passing of checks at branch or through clearing, opening and closing of accounts, bringing new business, monitoring cash, remittance of funds, operating lockers etc. But once he gets promoted to next grade his duties become more specialized in any of the verticals like Loans, Foreign Exchange or Retail banking. There is greater pressure on him to bring and retain new business.
Q.2 What is the role of a Specialist Officer in a General Insurance Company?
Specialist cadres are more likely to remain confined to their respective domains. For example accounts people will remain in areas relating to cash and accounts and law officers to areas dealing with law matters. Most of these specialist officers are likely to be posted in divisional or regional offices as compared to generalist cadres who may be posted in any of the above offices and including branches.
Very good prospects for growth for a Specialist Officer if one is able to clear departmental exams as well as Insurance Institute exams.
Q.3 What are the growth and Promotion Prospects in the General Insurance Industry? Is the Insurance industry comparable to banking in terms of growth?
Insurance Industry -No recruitment for decades
Due to virtually no recruitment of staff in general insurance industry in the last two decades there is going to be big vacuum in the industry particularly higher levels in the next five year period.
Internal Exams will lead to faster growth
So this is an excellent time to join this industry as most of the present day senior management staff is nearing retirement. The Insurance Institute conducts exams which enable the candidates to grow faster. All the companies have internal exams and clearing them give reasonably faster growth opportunities to deserving candidates. Any meritorious and hard working person joining as AO can aspire to become the CEO of his company.
Opportunity to move to the private sector after initial years
Under normal circumstances an AO should go upto Deputy General Manager level which is equal to CGM of a public sector bank. After few years of experience opportunities exist for AOs to shift to private insurance companies also with big salary jumps as well as raise in hierarchy.
Q. 3 What are the expected emoluments (remuneration) in this AO profile?
Emoluments will be more or less same as that of a Bank officer.
Q.4 Which Insurance company is the best to work for?
There is not much to choose as all insurance companies are governed by more or less same rules. People also get transferred from one company to another after reaching certain higher level of hierarchy. However New India Insurance is generally considered favourite by insiders.
Q.5 I am eligible for both Generalist and Specialist profiles which one should I opt for?
A generalist will have greater options to choose and likely to have better career progression. However at the entry level competition may be lesser for a specialist cadre post due to lesser number of candidates. Moreover as mentioned earlier specialist cadre officers are more likely to get posted in bigger stations.
Q.6 What are the benefits of this AO profile which are not available to bank employees?
Biggest is 5 days a week job and second almost No late sitting in the office. There is and approved fixed timing in Insurance companies whereas in banks late sitting is a routine matter and there is no fixed time to close shop. If the salaries in both bank and insurance are same then you work much lesser days / man-hours in insurance companies for the same salary.
Q.7 Will I have to do door to door marketing of policies?
Not really. Generally such work is done by agents and Development Officers. However they may seek your help in dealing with a particular prospective client once in a while.
Q.8 How should I prepare for the exam?
Going by the example of the NICL Insurance Assistant exam you should be prepared for traditional General Knowledge Questions (like SSC exams) and some Higher Mathematics questions like Geometry, Algebra and Trigonometry.
Q.9 What additional Insurance specific preparation I need to do?
It may be required at the time of interview and not at the time of written exam. The candidates while preparing for the written exam should prepare questions like headquarters of all the four companies and their present chairpersons, Headquarters of GIC, Place of National Insurance Academy, Chairman of LIC and IRDA, Difference between life and general insurance. The types of insurance covered by general insurance. Motor Tribunal act. What is re-insurance etc. Rest questions will be more or less on the pattern of normal banking exam. However the paper will not have many baking relating questions like Repo rate or CRR etc. More emphasis is likely to be on current affairs.
Q. 10 is this a transferable job with rural area postings?
Yes it is a pan India transferrable job but there is lesser possibility of rural posting as compared to a bank job where the probability of a rural posting is almost a certainty. Generally people are attached to one of the Regional Offices and stay there for considerable number of years in that Region till their promotion to next cadre.
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