Professional Indemnity insurance provides coverage to the policyholders in case of claims filed against them by the client for loss or damage due to act of negligence, error, or omission while executing their professional duties. The private sector availed the opportunity promptly and came forward to establish private insurance companies through promulgation of the Insurance Corporations (Amendment) Ordinance (LI of 1984) Insurance Market in Bangladesh now consists of two state-owned corporations, forty three and seventeen private sector general & life insurance companies respectively, a total of 62insurance companies.

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