Group executive director of CGU, Peter Ward told reporters here on Monday that a wide distribution network was necessary to distribute its products in India. "We are talking to quite a few banks for distribution of our products," said Ward.

He hoped that the good news about the clearance of IRDA Bill would soon come from the Parliament.

In India, CGU intends to operate two separate companies with Indian partners, CGU Life Insurance and CGU General Insurance.

CGU Life Insurance with its representative office in Delhi has an existing MoU with The Hindustan Times group. The proposed life JV would focus on life insurance, pension schemes and group schemes.

Ward said that life insurance business at CGU played a critical role in the global business plan, contributing around half of the group's worldwide business. "Given the choice, we would go for lifeinsurance business in India," he added.

Though initially the insurance products from the new entrants would not have much of a pricing differential from the existing LIC/GIC policies, these would vary in terms of efficiency levels, he said.

According to Sandy Davidson, representative, CGU Life Insurance, the company will be driven by the customers and it wanted to know more about their needs and buying behaviour. "We firmly believe that this knowledge will help us develop products, services and distribution channels which match our customer requirements," he said.

On the general insurance side, CGU General Insurance with its representative office in Mumbai has an MoU with the Wadia group to enter this sector. The proposed new company will focus on commercial and personal insurance.

"Our focus will be to provide our customers world class service. We are known for setting claims promptly, fairly and equitably," said John Brice, representative, CGU General Insurance.

The equity pattern of both theseproposed ventures would be as anticipated in the IRDA Bill, said Ward.

He said "We will package a few products into one as suggested by IRDA". Ward pointed out that the entrants would not be in a position to subsidise some sections of the society as is being done by the existing players. "But the rules of the game would also change for the existing players," he said.

Ward said that these two JVs would go by the advice of the market regulator not to indulge in any price war "at least for initial few years."