The government is examining the creation of a domestic protection and indemnity (P&I) club for Indian shipping lines, a move aimed at strengthening the country’s maritime risk cover as tensions in West Asia disrupt shipping routes and raise concerns over vessel insurance and the safety of Indian seafarers.
The proposal gained urgency amid the evolving situation around the Strait of Hormuz, one of the world’s most critical maritime chokepoints for energy and cargo movement.
What did special secretary in the Union Ministry of Ports say?
Addressing the media on the developments, Rajesh Kumar Sinha, special secretary in the Union Ministry of Ports, Shipping and Waterways, said the shipping ministry has begun consultations with the Ministry of Finance and the Department of Financial Services on the proposal, while a feasibility study has also been commissioned.
Officials said the government will take a decision based on the findings of the study, which is expected to examine the structure, capital requirements and operational framework for a potential Indian P&I entity. The move comes as maritime authorities closely monitor shipping activity in the Persian Gulf region, where tensions have heightened risks for vessels and crew.
22 Indian flagged vessels remain in the gulf
According to the ministry, 22 Indian-flagged vessels with 611 Indian seafarers remain in the western Persian Gulf, with authorities tracking developments in coordination with shipowners, recruitment and placement service license (RPSL) agencies and Indian diplomatic missions.
Even as regional tensions affect shipping traffic, some vessels have successfully reached Indian ports with critical cargo. The LPG carrier Shivalik has arrived at Mundra Port, where discharge operations are underway, while the tanker Nanda Devi reached Kandla port early Tuesday and has begun unloading for onward movement to the east coast, including Ennore and Haldia.
Officials said documentation and pre-arrival procedures for the vessels were completed in advance to ensure priority berthing and faster cargo discharge, minimising potential disruptions. Port authorities are also maintaining close surveillance of vessel movement and cargo flows.
Additional logistics support has been arranged, including around 90,000 square metres of storage space provided by the V.O. Chidambaranar Port Authority (VOCPA) to handle transshipment containers. The ministry also clarified that reports of containers lying on roads outside the Jawaharlal Nehru Port Authority (JNPA) are inaccurate, stating that containers are currently located at container freight stations, warehouses or factory premises as part of normal logistics operations.
Officials added that congestion at JNPA has been easing, with perishable container volumes declining from around 2,000 earlier to about 1,000. Some vessels have already sailed to Salalah and Khor Fakkan, and another ship carrying around 200 containers is expected to depart shortly, with the number of stranded containers likely to decline further to around 600 within the next 24-48 hours.
Against this backdrop, policymakers are revisiting the idea of establishing an Indian P&I insurance pool to provide liability coverage for domestic shipowners. P&I clubs are mutual, non-profit insurance associations created by shipowners to collectively cover third-party liabilities arising from maritime operations.
Unlike traditional marine insurance, which covers damage to ships or cargo, P&I insurance protects operators against liabilities such as crew injuries, passenger claims, cargo damage, environmental pollution, collision liabilities, port damage, wreck removal and legal penalties.
These liabilities can often exceed the value of the vessel itself, making pooled insurance structures essential for global shipping operations. At present, most shipping liabilities worldwide are covered through the International Group of P&I Clubs, a London-based association whose 13 member clubs provide insurance cover to around 90% of the world’s ocean-going fleet.
Industry experts say India’s dependence on such international pools can expose shipping companies to external regulatory pressures or sanctions that could affect insurance availability. A domestic P&I club could help reduce reliance on overseas insurers, provide risk cover tailored to Indian shipping operations and strengthen the country’s maritime financial ecosystem.
If implemented, the proposed insurance pool could become a key institutional support for India’s shipping industry as global trade routes face increasing geopolitical uncertainty.