The post was lying vacant since the retirement of S Roy Chowdhury in February 2014.
Sathe will be joining the Insurance Regulatory and Development Authority of India (IRDAI) on July 1 and have a four-year long tenure at the Hyderabad-headquartered insurance sector watchdog.
The 58-year-old insurance and financial sector veteran confirmed the appointment.
"I received my appointment letter to work as member, life, at IRDAI on June 12 and will be assuming my new assignment on July 1," he told PTI here today.
The Finance Ministry had conducted an interview for the post in March and except two, all the candidates who appeared were from the State-run insurance behemoth.
Meanwhile, the new member, finance at IRDAI, V R Iyer -- a former Chairperson and Managing Director, Bank of India, took charge in Hyderabad today.
Sathe brings a rich experience of over three decades in insurance and mutual fund industry.
Before joining LIC Nomura Mutual Fund AMC as CEO, he headed the northern zone of LIC in-charge of marketing and administration of seven states and one Union Territory spread over from J&K to Rajasthan.
Among others who had appeared for the interview for member, life at IRDAI included LIC Executive Directors Vipin Anand, S Bhattacharya and Hemant Bhargava.
The post of member, non-life at the regulator is still lying vacant.
Nine short-listed General Manager-level officers and CMD of Agriculture Insurance Corporation P J Joseph were interviewed for the post of member, non-life that fell vacant in April when the incumbent M Ramaprasad retired.