To extend affordable shipping insurance cover amid the West Asia conflict, the government on Tuesday launched the ‘Bharat Maritime Insurance Pool’ (BMIP), a $1.5 billion domestic insurance mechanism backed by a sovereign guarantee of $1.4 billion, or nearly Rs 12,980 crore.
The pool has been created to ensure uninterrupted maritime insurance coverage for Indian-flagged or Indian-controlled vessels, as well as ships operating to and from India.
The insurance pool will provide coverage for a wide range of maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War Risk insurance.
During the launch event, financial services secretary M Nagaraju handed over the first Marine Hull and Machinery War Policy document, issued by New India Assurance Company Limited under the BMIP, to Hoger Offshore and Marine Private Limited. The policy offers protection against war-related risks while navigating high-risk maritime zones.
A Marine Cargo War Policy was also issued to Vedanta Sterlite Copper Ltd. for imports of cable wires, while another policy was extended to Balrampur Chini Mills Limited.
Officials said the move addresses vulnerabilities arising from dependence on foreign insurers and reinsurers, especially during sanctions or geopolitical crises when international coverage may be withdrawn. The pool, administered by GIC Re, will use the collective underwriting capacity of domestic insurers. Claims up to $100 million will be serviced by the pool, while the sovereign guarantee will act as a backstop for larger claims.
The government said the initiative would strengthen India’s financial sovereignty and ensure continuity of maritime trade operations during global uncertainties as India’s economic power rises globally.