III Exam Allowances for LIC and Insurer Staff
The allowance is paid for the Associateship diploma, not for IC-22 alone. Here is what the 2021 rules say.
LIC pays a monthly special allowance to staff who pass Insurance Institute of India qualifications. The allowance is tied to the diploma, not to single papers: passing IC-22 on its own earns nothing extra, but IC-22 is a compulsory paper for the Associateship, and the Associateship is where the allowance steps up.
This page sets out the 2021 rules as published in the Gazette of India, what they mean for an IC-22 candidate, and what to confirm with your HR department.
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LIC Special Allowance for III Qualifications (2021 Rules)
Monthly amounts from the Gazette notifications of 15 April 2021 (G.S.R. 267(E) for Class I, G.S.R. 271(E) for Class III).
Licentiate
Class I officers
₹650 a month
Class III employees
₹555 a month
Associateship
Class I officers
₹2,600 a month
Class III employees
₹1,505 a month
Fellowship
Class I officers
₹5,200 a month
Class III employees
₹2,575 a month
| III qualification | Class I officers | Class III employees |
|---|---|---|
| Licentiate | ₹650 a month | ₹555 a month |
| Associateship | ₹2,600 a month | ₹1,505 a month |
| Fellowship | ₹5,200 a month | ₹2,575 a month |
Confirm the Current Amount With LIC HR
These are the amounts in the 2021 Gazette rules. LIC's service rules have been amended since 2021, and we could not confirm from a primary source whether a later revision changed these figures. Check the current rule with your HR or establishment department before counting on a number.
Where IC-22 Fits
- 1
Licentiate (60 credit points)
IC-01, then IC-02 or IC-11, plus an optional paper. Passing it earns the Licentiate allowance.
- 2
Associateship compulsory papers
IC-22 Life Insurance Underwriting and IC-26 Life Assurance Finance for the Life stream, 30 credit points each.
- 3
Associateship optional papers
Enough further papers to reach 250 credit points in total, including the 60 from the Licentiate.
- 4
Diploma awarded
III awards the Associateship diploma within a month of the result once you have the credit points and both compulsory papers. That is when the Associateship allowance becomes relevant.
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The Conditions in the Class I Rules
- Who is covered
- Whole-time, salaried and confirmed officers of the Corporation.
- Exams passed before promotion
- If you passed one or more III exams before becoming a Class I officer, the allowance for the exam passed in Class I is reduced by the allowance for the exam passed earlier.
- Everything passed before promotion
- An officer who passed all III exams before promotion to Class I is not eligible on promotion, except that one whose pay is fixed at the minimum of the scale gets half the allowance.
Why It Matters for Your Timing
Because the allowance is paid per diploma, the money arrives only when the whole Associateship is done. A sensible plan is to take IC-22 and IC-26 early, since they are compulsory and cannot be substituted, and fill the remaining credit points with optional papers close to your work.
Credit points from passed papers are valid for 5 years until you complete the Associateship, so a long gap between papers can cost you credits. Once the Associateship is complete, its 250 credit points are permanent.
Other Insurers
Other insurers may recognise III qualifications in promotions or pay, but any such scheme is set by each company internally. Ask your HR team for the current policy; we only describe LIC's published Gazette rules here.
FAQs
Does LIC pay an allowance for passing IC-22?expand_more
Not for IC-22 on its own. Under the 2021 Gazette rules, the allowance is paid for the Licentiate, Associateship and Fellowship diplomas. IC-22 is a compulsory paper for the Associateship.
How much is the Associateship allowance for LIC Class I officers?expand_more
₹2,600 a month under the 2021 rules (G.S.R. 267(E), 15 April 2021). Confirm with LIC HR whether a later revision has changed it.
How much is it for Class III employees?expand_more
₹1,505 a month for the Associateship under the 2021 amendment to the Class III rules, which was deemed to apply from 1 August 2017.
I passed the Licentiate as Class III and the Associateship as a Class I officer. What do I get?expand_more
Under rule 4(1) of the Class I rules, the Associateship allowance is reduced by the allowance for the exam you passed before promotion. Your HR department applies the exact figure.
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