Bharat Maritime Insurance Pool from global volatility for insulating

In a major policy intervention by the Narendra Modi Government, the Union Cabinet has approved the creation of a domestic maritime insurance pool with a sovereign guarantee of Rs 12,980 crore.

The proposed ‘Bharat Maritime Insurance Pool’ (BMI Pool) will provide comprehensive coverage across key segments — hull and machinery, cargo, protection and indemnity (P&I), and war risk — for Indian-flagged and Indian-controlled vessels, including those operating in conflict-prone international waters.

India’s maritime sector handles over 70% of the country’s trade by volume and nearly 95% by value, yet insurance coverage for this vast ecosystem has largely remained in foreign hands.

This structural vulnerability became evident during recent disruptions in key shipping corridors such as the Red Sea, Strait of Hormuz and the Gulf of Oman, when several global insurers sharply increased premiums or withdrew coverage altogether, exposing Indian exporters and shipping operators to heightened financial risk and operational uncertainty.

The pool will extend insurance protection to vessels carrying cargo between international ports and India in both directions. It will cover the physical structure of ships under hull and machinery insurance, protect goods in transit through cargo insurance, and address third-party liabilities such as crew injury and environmental damage under protection and indemnity (P&I) coverage.

In addition, it will provide war risk insurance for vessels operating in conflict zones and high-risk maritime corridors, ensuring Indian shipping remains operational even in volatile regions.

 👇 Please Note 👇

Thank you for reading our article!

If you don’t received industries updates, News & our daily articles

please Whatsapp your Wapp No. or V Card on 8278298590, your number will be added in our broadcasting list.