In his nearly four decades in LIC, Mohanty has held several key positions, including Chief Operating Officer and Chief Executive Officer of LIC Housing Finance.
Mohanty, who is one of the four managing directors at LIC, was already named as interim chairman in March for three months.
The life insurance company said that MR Kumar, the LIC's current chairman, has not been given an extended term.
The key to a change in LIC's fortunes lies not in bringing in outside talent, but in giving its management a completely free hand
"We are already doing a lot of long-term health protection and guaranteed health products," said LIC Chairman M R Kumar
At closing, the stock settled at Rs 872.70 on BSE, down 8.04 percent from its previous close while its mcap stood at Rs 5.52 trillion. With this listing, the policyholders and employees also saw their investment turning into negative.
The insurance behemoth will try to arrest its market share loss, ramp up its digital channels and make tactical tweaks on equity investments to please policyholders, Chairman MR Kumar says
With the extension, MR Kumar will continue as chairman of LIC till March 2023 or till he attains the age of superannuation.
The public insurer is readying itself for higher compliance and answerability to minority shareholders post the listing, says Kumar