How to Prepare Insurance Awareness for LIC AAO 2023?

Insurance & Financial Market Awareness for LIC AAO 2023 – LIC AAO official notification released on 15th January 2023. Insurance and financial awareness is an important section in LIC AAO 2023 mains. There are totally 30 questions in this section that contains 60 mark i.e. 2 mark each question.

As it is the Phase II exam, it becomes very important to score high in this phase and this particular section can help you a lot in increasing your overall score. It is therefore advisable to prepare for this section thoroughly so that you do not miss out on any mark. In this blog we will be telling as to how you can go about your preparation for Insurance Awareness for LIC AAO 2023 Exam.

Also Read:

LIC AAO Best Books for Preparation 2023 – Prelims and Mains

Phase-II: Main Exam Pattern (For Generalist)

Without further ado let’s look at the Phase II or Mains Exam Pattern for LIC AAO 2023 Exam below:

Section	No. of Questions	Maximum Marks	Duration
Reasoning Ability	30	90	40 minutes
General Knowledge & Current Affairs	30	60	20 minutes
Data Analysis & Interpretation	30	90	40 minutes
Insurance & Financial Market Awareness	30	60	20 minutes
Total	120	300	2 Hours
Descriptive English (Letter Writing & Essay)	2	25	30 Minutes

Note: English Language test will be of qualifying nature and the marks in English Language will not be counted for ranking.

Preparation Tips for Insurance Awareness for LIC AAO 2023:

Important Topic for Insurance Awareness for LIC AAO 2023:

• History of Banking and Insurance
• Financial Institutes, Terminologies, derivatives
• Current banking news and events related to insurance and financial market.

Also Read:

LIC AAO Important Topics Subject-Wise – 2023

Topics Under Insurance and Financial Awarness:

First of all let us discuss topics that comes under the Insurance Awareness section for  Exam.

Financial Market Topics:

• The Indian Financial System- Overview
  • Financial Markets- features and functions
  • Financial Institutions
  • Financial Instruments
• Financial Markets
  • Money Market
  • Capital Market
    • Primary market
    • Capital Market
• Money Market Instruments
  • T-Bills- types and features
  • Commercial Paper
  • Certificate of Deposit
  • Commercial Bills
  • Call/notice money market
  • CBLO
• Primary Market
  • Book building
  • ASBA
  • Anchor investor
  • Green shoe option
  • IPOs and FPOs
  • IDRs and GDRs
  • Qualified Institutional Placement
  • ECBs, FCCBs, Euro issue
• Secondary Market
  • Functions
  • Listing and de-listing
  • Important SEBI regulations
  • Stock Exchanges
• Derivatives
  • Forwards
  • Futures
  • Options
  • Exchange traded vs OTC
• Government Securities Debt Market
• Forex Markets
• Financial Institutions
  • RBI
  • SEBI
  • IRDA
  • PFRDA
  • SIDBI
  • EXIM
  • IDFC
  • EXIM
  • NABARD
• Banking In India
  • Functions
  • Scheduled Commercial Banks- PSBs, private banks and foreign banks
  • Important terminology used in banking sector- SLR, CRR, NPA, CAR, Basel Norms
  • Cooperative Banking
  • NBFCs
  • SARFAESI Act
  • Monetary and Fiscal Policy
  • Money laundering and KYC
• Important Changes in the Financial sector
• Disinvestments
• Financial Inclusion- important milestones
• Use of technology in financial sector
• Alternate sources of finance- Bitcoins, Crowdfunding
• Corporate Governance in Financial Sector
• The Union Budget
• Economic Survey
• Key financial indicators- inflations (WPI and CPI), GDP rate, IIP rate etc

Visit the following sites regularly and make notes of the FAQs and notifications (last 6 months)

• RBI
• SEBI
• IRDA

Insurance Knowledge or Insurance Awareness Topics

• Insurance Introduction – features and working
• Life Insurance- History and Evolution
• LIC
• General Insurance – History and Evolution
• GIC
• 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 Compnaies
• 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
• Traditional Life Insurance products-
  • Term Insurance
  • Whole Life Insurance
  • Endowment insurance
  • Variants
• Non- Traditional Life Insurance products-
  • Universal Life insurance
  • Variable insurance
  • ULIPs
• 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
• Regulatory aspects
  • IRDA
  • Ombudsman
  • IRDA Act 1999
  • Insurance Laws (Amendment) Act 2015
• Important committees
• 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
•  Important LIC life insurance schemes
• Latest developments in life insurance – 6 months CAF
• Important technological changes in insurance

Points to be Remembered for LIC AAO Insurance and Financial Awareness Preparation:

• Candidates are not required to study in depth of all topics in insurance and financial market. Candidates can cover important current affairs in the last 6 months.
• Insurance is the topic that needs full attention. Insurance require in depth study especially about the basic terms and definitions used along with regulatory aspects and grievance redressal mechanisms.
• Focus on schemes related to insurance that is been introduced in the last 4 years. There are different types of insurance scheme available in LIC each of this has to be focused well.
• Other key points include insurance committees, insurance companies, important government policies like FDI in insurance, any other information in the budget/economic survey etc.
• Monthly economic capsule of any publication
• FAQs on RBI, SEBI and IRDA’s sites along with latest notifications.
• The latest Economic Survey
• Latest Budget
• Latest Financial government schemes – both Centre and State

Best Book For LIC AAO Insurance and Financial Awareness Preparation:

Book Name	Author/Publication
Indian Financial System	Bharati V Pathak
Financial Awareness for Competitive Exams	Disha Publication
Disha Publication	Pratiyogita Darpan

Bottom Line:

This above given list is not exhaustive but yet can be considered as a good start for your LIC AAO 2023 Exam Preparations. Go through them and prepare well for Insurance Awareness for LIC AAO. Hope this information’s will help you ace insurance and financial awareness section in LIC AAO. For further more information’s like this do visti oliveboard’s website.

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