Mumbai: The central government has constituted a nine-member study group to examine the issues related to bancassurance.

The study group, headed by SBI Life managing director and chief executive officer R Krishnamurthy, will study all the issues pertaining to bancassurance and submit its recommendation to the government by mid-February 2003.

According to a government circular issued on 13 January 2003, the study group will try to evolve a suitable model of bancassurance for efficient distribution of insurance products through the network of bank branches. The international best practice in this regard can be taken into account while developing an appropriate model in the Indian context.

Similarly, the group will specify administrative measures that may be necessary to encourage banks to undertake distribution of insurance products in rural areas, particularly among the unorganised and vulnerable segments of the population. And it will look into all the other related issues concerning the bancassurance model that would help the policymakers to introduce a viable system in India.

Apart form Krishnamurthy, the study group consists of Stuart Purdy, managing director, Aviv Life Insurance Co; Yeo Metzeller, managing director ING Vysya Insurance; R V Shastri, CMD Canara Bank; Cherian Verghese, CMD, Corporation Bank; S B Mathur, chairman, Life Insurance Corporation of India; R C Sharma, member, Insurance Regulatory Development Authority; and Reserve Bank of India and finance ministry representatives.