LIC AAO: Score 40+ Insurance & Financial Market Awareness Section

LIC AAO Mains: How to score 40+ in Insurance& Financial Market Awareness?

How to score 40+ in Insurance and Financial Market Awareness Section
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LIC AAO Mains 2023: Score 40+ in Insurance and Financial Market Awareness

LIC AAO Mains Exam Preparation Tips 2023

The LIC AAO Mains Examination 2023 is in the offing. The LIC AAO Mains Exam 2023 is scheduled to be held on 18 March 2023 by the Life Insurance Corporation of India (LIC) across LIC AAO Mains exam centers across India.

The LIC AAO Prelims Exam 2023 results will be released soon on the official website of LIC India. Candidates who have successfully cleared the LIC AAO Prelims Exam can directly download their LIC AAO Mains Exam Admit Card 2023 through this link.

It is imperative that the candidates, who attend the LIC AAO Mains Exam 2023, are well aware of the LIC AAO Syllabus in detail. This will ensure the success of the candidates in the LIC AAO Mains Exam 2023.

Candidates need to remember this when it comes to clearing the LIC AAO Mains Exam 2023:

LIC AAO 2023: Exam Pattern for Mains

Sections

Number of Questions

Total Marks

Duration

Reasoning

30

90

40 minutes

General Knowledge, Current Affairs

30

60

20 minutes

Professional knowledge 

30

90

40 minutes

Insurance and Financial Market Awareness

30

60

20 minutes

Total

120

300

120 minutes

English Language (Letter Writing & Essay)/ Legal drafting for AAO(Legal)

2

25

30 minutes

LIC AAO 2023: Syllabus for Insurance and Financial Awareness

The syllabus for the insurance and financial awareness section in the LIC Assistant Administrative Officer Mains Exam is as mentioned below:

  1. Development
  2. Various laws and policies
  3. Business/finance topic
  4. History of banking and insurance
  5. Current banking news and events related to the financial market and insurance
  6. Financial institutes, derivations, and terminologies

LIC AAO Mains : Preparation Strategy for Insurance and Financial Market Awareness

Candidates need to answer questions in this part within an hour and not more. Answering questions in this section is simple, unlike the other sections of the LIC AAO exam. There are no calculations involved, nor are there any tricky questions. 

Candidates can answer a question only if they know about it; this section has no place for guesswork. Thus, acing a 40+ score is not that difficult. The main thing to do here is to prepare strategically by covering all essential topics.

The table below represents all the topics that candidates must prepare for the insurance and financial market section.

Subject

Topics

 

Financial Market Awareness

The Indian Financial System – Overview

  • Financial institutions
  • Financial markets – Features and functions
  • Financial instruments

Money Market Instruments

  • Commercial paper
  • T-Bills – Types and features
  • Certificate of deposit
  • Call/notice money market
  • Commercial bills
  • CBLO

Financial Markets

  • Money market
  • Capital market
  • Primary market

Primary Market

  • ASBA
  • Book building
  • Green shoe option
  • Anchor investor
  • IPOs and FPOs
  • IDRs and GDRs
  • ECBs, FCCBs, Euro issue
  • Qualified institutional placement

Secondary Market

  • Functions
  • Important SEBI regulations
  • Listing and delisting
  • Stock exchanges

Derivatives

  • Forwards
  • Options
  • Futures
  • Exchange traded vs OTC

Government Securities Debt Market

Forex Markets

Financial Institutions

  • RBI
  • SEBI
  • IRDA
  • PFRDA
  • SIDBI
  • EXIM
  • IDFC
  • EXIM
  • NABARD

Banking in India

  • Scheduled Commercial Banks – PSBs, private banks and foreign banks
  • Important terminology used in the banking sector – SLR, CRR, NPA, CAR, and Basel Norms
  • Functions
  • NBFCs
  • Cooperative banking
  • Monetary and fiscal policy
  • Money laundering and KYC
  • SARFAESI Act

Other Topics

  • Disinvestments
  • Important changes in the financial sector
  • Use of technology in the financial sector
  • Corporate governance in the financial sector
  • Key financial indicators – Inflation (WPI and CPI), GDP rate, IIP rate, etc.
  • Alternate sources of finance – Bitcoins and Crowdfunding
  • The Union Budget
  • Financial Inclusion – Important milestones
  • Economic survey

 

Insurance Knowledge or Insurance Awareness

Important Insurance Companies

  • New India Assurance Company Limited
  • United India Insurance Company Limited
  • Oriental Insurance Company Limited
  • National Insurance Company Limited
  • Agriculture Insurance Company of India Limited
  • Private Life Insurance Companies
  • Use of insurance as a tool to manage risk
  • Features of an insurance contract
  • Insurance and social security
  • Human life value
  • Mutuality and diversification
  • Principles of life insurance
  • Elements of an insurance contract
  • Insurance pricing – Basics
  • Documentation at various stages
  • Important committees

Other Topics

  • Annuity – Types and features
  • Underwriting
  • Claims – Types and procedures
  • Selling process
  • Customer service
  • Health Insurance – Basics
  • Motor Insurance – Basics
  • Property insurance basics
  • Married Women’s Property Act
  • Important terminology
  • Grievance redressal mechanism
  • Insurance introduction – Features and working
  • Life Insurance – History and evolution
  • LIC
  • GIC
  • General Insurance – History and evolution
  •  Important LIC life insurance schemes
  • Latest developments in life insurance – 6 months CAF
  • Important technological changes in insurance 

Traditional Life Insurance Products

  • Term insurance
  • Whole life insurance
  • Endowment insurance
  • Variants

Regulatory Aspects

  • IRDA
  • Ombudsman
  • IRDA Act 1999
  • Insurance Laws (Amendment) Act 2015

Non-traditional Life Insurance Products

  • Universal Life insurance
  • Variable insurance
  • ULIPs

Government Schemes 

  • Pradhan Mantri Fasal Bima Yojana
  • Pradhan Mantri Suraskha Bima Yojana
  • Rashtriya Swasthya Bima Yojana
  • Employment State Insurance Scheme
  • Central Government health scheme
  • Aam Aadmi Bima Yojana
  • Janashree Bima Yojana
  • Universal Health Insurance scheme

How to Score 40+ in the Insurance And Financial Market Awareness Section

Candidates need to pay heed to the important factors mentioned below to successfully qualify in the insurance and financial market awareness section: 

  1. As the insurance and financial market awareness section is vast, candidates do not need to have detailed knowledge about all the topics mentioned, but having a strong base and basic knowledge will do.
  2. Go through all current affairs of the last 6 months that are related to the insurance and financial market.
  3. Be aware of all the insurance schemes introduced in the past 4 to 5 years.
  4. Exercise detailed knowledge about the different insurance products and how they differ from each other.
  5. Have knowledge about the latest economic survey and the last budget.
  6. Be aware of the latest central and state-wise financial government schemes.
  7. Learn about the latest notification and other relevant topics from SEBI, IRDA and RBI websites. 
  8. Memorise important facts about insurance companies, committees and government policies such as insurance FDI. 

Scoring 40+ in the insurance and financial market awareness section is not difficult to achieve, and candidates should cover all the topics mentioned in the table above. To prepare well, applicants must accumulate all study materials beforehand and devote around 4 to 5 hours to prepare for this section. Moreover, aspirants must practice some mock tests and always stay updated on current affairs related to the insurance and market awareness section. So, if you are still confused about the preparation of this section, contact us at Veranda Learning for further help.

LIC AAO : insurance and financial market awareness section FAQs

  • Q. When is the LIC AAO Mains Exam 2023 scheduled to be held by the LIC?

    Ans: The LIC AAO Mains Exam 2023 is tentatively scheduled to be held on 18 March 2023. But this date is subject to change based on the releasing of the LIC AAO Prelims Exam 2023 results.

  • Q. How many sections are there in the LIC AAO Mains Exam 2023?

    Ans: The LIC AAO Mains Exam consists of a objective test with 4 sections for a total of 300 marks and a descriptive test for a  total of 25 marks. The descriptive test is qualifying in nature. Candidates will be shortlisted for the LIC AAO Interview 2023 based on their marks and performance in the LIC AAO Mains Exam 2023.

  • Q. Where can I find the best study materials to prepare for the Insurance & Financial Market section in the LIC AAO Mains Exam 2023?

    Ans: Candidates can follow the Veranda RACE’s Bank YouTube channel to update their knowledge on Insurance & Financial Market section. This will ensure that they score the maximum marks in the LIC AAO Mains Exam 2023. Also, there are numerous notes and PDFs available to aid the preparation of the students for the LIC AAO Mains Exam 2023.

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