The chairman of India’s largest insurance company and asset manager Life Insurance Corporation of India (LIC) is likely to get another term in office. Highly placed sources said that MR Kumar, Chairman, LIC, may get another 6–12 months of additional term in office. Kumar is set to step down on March 13.

“However, it seems that another extension is likely,” said the source quoted above. An email to LIC on the possible extension of Kumar’s service remained unanswered.

If Kumar continues to hold the chairman’s role, it would be his third extension and fourth appointment as the chairman of insurance behemoth. In March 2019, he was elevated to the chairman’s office from the position of Zonal manager (Delhi).

A little before the completion of his tenure in July 2021, the government, which usually takes the call on such appointments, extended his tenure till March 2022 and then subsequently by another year till March 2023. His third term at office saw the listing of LIC on the stock exchanges and the beginning of divestment process of IDBI Bank (LIC’s associate company).

Kumar’s continuation as chairman is seen critical to support the corporation’s performance, especially with the tax amendments brought about in the union budget and the divestment of IDBI Bank still at initial stages.

Meanwhile, people with knowledge of the matter said that Siddharth Mohanty, currently one of the four managing directors of LIC, is also in the race for the chairman’s office. Mohanty was appointed as MD in February 2021, and would hold office till June 30, 2023 when he is due for superannuation.

“When he was roped in from LIC Housing Finance to LIC in 2021, he was seen as a likely chairman candidate, though Kumar was given another term at office,” said another source aware of the matter.  

Nonetheless, with the government focused on revamping the top management at the corporation i.e. adopting a CEO and four MDs approach, “no names outside of LIC are doing the rounds for the chairman position and in all probability, it would be an internal candidate who would take charge,” said a senior official who did not want to be named.

In 2021, amendments were made to the LIC Act to allow the appointment of CEO instead of chairman and four MDs who would report to the CEO. It is learnt that the government is keen on implementing this structure by 2024 and may rope in professionals outside of LIC for this purpose.

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