"It is necessary to bring these funds under some form of regulatory arrangement or mechanism,'' feels the committee constituted by the Reserve Bank of India governor. The group feels that the certificate, including the basis of premium, given by the actuary may be treated as a public document and be made available, on demand, to other companies and to any practising actuary. Further, the premium rate table and the benefit design may also be treated as `published information'. A similar procedure could be considered for group business and for general insurance business. The group also suggests that to ensure uniformity in design, terms/conditions and marketability of products, coordination between regulators of these two segments of the insurance sector is imperative. This, it says, will also help bring about a level-playing field between insurance companies and mutual funds.

The committee has suggested that with a view to expanding the insurance business in rural areas, the role of co-operatives should not be ruled out.

Some of the major recommendation of the group are -: * With a view to conforming to international practice, a section similar to Section 6(2)(h) of the LIC Act be considered for incorporation into the Insurance Act (1938). This will enable Indian insurance companies to provide similar allied services to customers. * `Life' and `non-life' insurance businesses are to be conducted by separate companies. The Insurance Regulatory Development Authority (IRDA) has also decided not to permit the formation of composite companies. It is however advisable to place an explicit restriction on the formation of composite companies.

* It is desirable to take a fresh look at developments in other countries and consider introduction of a more elaborate system of classification of life and non-life insurance. * At present, the minimum capital requirement is more than adequate when compared with international practices. Minimum capital levels should nevertheless be fixed for each class of business on a more transparent basis.

* With a view to enhancing transparency, the regulator may, as a rule, ascertain the names of the natural and legal persons holding direct or indirect qualifying participation in the applicant company. More importantly, the regulator may make this knowledge public while granting the license.

* As for the suitability of owner companies, a sound reputation must be made a prerequisite.

* Regarding outsourcing of various functions, it will be desirable to follow international practices as well as Indian industrial practices, in the light of economies of scale and scope.

* The group is of the view that a firm of consulting actuaries may be considered for acting as appointed actuaries as is the practice in most countries. Furthermore, the group points out, the condition that a `certificate of practice' has to be obtained every year from the professional body is not applicable to any other profession. This the group feels, needs a relook.