New Delhi, Sept. 24 -- Buying an insurance policy often involves relying on an agent, bank employee or other salesperson to explain what the policy covers, how much it costs and whether it actually suits your needs. If that advice is misleading, the financial consequences can extend well beyond the premium paid by the customer.

The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a measure that could directly affect the person selling the policy. Under its consultation paper on insurance distribution reforms, insurers would be expected to claw back commission when an instance of mis-selling is established. The proposal is aimed at making the person selling the policy financially accountable for such conduct. ...