A novel physical-statistical channel model for simulating the signal effect by moving human bodies is presented. The human body is modeled as vertically oriented dielectric cylindrical volume. The received signal is assumed to be composed of a direct component which might be subject to shadowing and a multipath component due to reflection and diffuse scattering, i.e., a Ricean channel. The shadowing effect of the direct signal component is calculated using Kirchhoff diffraction equation. The multipath component is parameterized by calculating the reflected fields from the floor, ceiling and walls of the indoor environment as well as scattered fields from moving human bodies. Poisson and Exponential distributions are used to describe the shadowing and inter-shadowing events caused by multiple bodies, respectively.