Mumbai, June 30 -- Rampant mis-selling and fraud are plaguing parts of the life insurance industry, even as the insurance regulator moves to tighten rules governing how policies are sold, a top executive at Life Insurance Corp. of India (LIC) said on Tuesday.

"There have been reports of rampant mis-selling of life insurance and fraud in some pockets of the country. We are really worried," Ratnakar Patnaik, managing director at LIC, said at the 71st Foundation Day seminar of the Insurance Institute of India.

Patnaik said there were instances where policies had been sold in the names of non-existent people, with claims settled years later. He said his comments were limited to the life insurance industry.

The concerns come as the Insuranc...