Section 20 in The Insurance Regulatory And Development Authority (Insurance Brokers) Regulations, 2002
20. Ceiling on business from single client .-(1) The business of the insurance broker shall be carried in such a manner that, not more than 50 per cent. of the premium (quantum receipts, etc., as the case may be) in the first year of business, 40 per cent. of the premium in the second year of business, and 30 per cent. of the premium from the third year of business onwards shall emanate from any one client.
Note .-For the purposes of this regulation, the term "client" shall include, in the case of a firm or a company, an associate or a subsidiary or a group concern under the same management.(2)The decision of the Authority as to whether a company, a business or an organisation is under the same management shall be final.
