New Delhi, June 23 -- In a set of draft rules released in mid-June, the Insurance Regulatory and Development Authority of India (Irdai) proposed tagging every policy to the individual who sold it, one of several measures aimed at curbing mis-selling. The drafts also loosen the rules on how insurers invest their funds, reduce the capital foreign reinsurers need to enter India, and allow insurers to merge with non-insurance companies for the first time. Together, they mark the first wave of detailed rulemaking under last year's overhaul of insurance law and will be open for public comment in early July. Mint breaks them down.

What are the changes targeting mis-selling, and how are policies sold?

Mis-selling is the sale of a policy that do...