Well, Hindus are overwhelmingly cremated, not buried. But the idea of becoming a new entity after death is correct. Sri Krishna says in the Bhagavad Gita 12.22 "As a person puts on new garments, giving up old ones, similarly, the soul accepts new material bodies, giving up the old and useless ones." We're not necessarily reborn as a 'person'. Depending on one's karma (and there are a multitude of categories of karma), or actions, one can be reborn as any form of life. Not as a rock, however, contrary to popular belief. Rocks or anything else inanimate can neither create nor use up karma. So, how does a soul create karma if reborn as a centipede? Well, centipedes can't create karma, but they can use up their store of karma from previous births. The Buddhist take on it is a little different. Though I understand it, I'll defer to a Buddhist to explain it.