THEBUSINESSBYTES
BUREAU
NEW
DELHI, APRIL 18, 2026
In a decisive move to
fortify India’s maritime trade against global uncertainties, the Union Cabinet
chaired by Prime Minister Narendra Modi has approved the creation of the
‘Bharat Maritime Insurance Pool’ (BMI Pool), backed by a sovereign guarantee of
₹12,980 crore. The initiative aims to
ensure uninterrupted and affordable maritime insurance
coverage for Indian vessels and cargo, even amid geopolitical tensions and
volatile sea routes.
The newly approved
domestic insurance pool is designed to provide a robust safety net for India’s
shipping ecosystem, ensuring that vessels transporting goods to and from Indian
ports remain insured despite disruptions in global insurance markets. The move
comes at a time when escalating geopolitical instability has significantly
increased risks associated with maritime trade, driving up insurance premiums
and creating uncertainty in coverage availability.
At present, Indian
shipping heavily relies on international insurers, particularly the
International Group of Protection and Indemnity (IGP&I) Clubs, for critical
third-party liability coverage. These include risks such as oil pollution,
wreck removal, cargo damage, crew injuries, collision liabilities, and
repatriation. However, such dependence exposes Indian trade to vulnerabilities,
especially in situations involving sanctions or geopolitical conflicts where
coverage may be withdrawn.
Addressing this
strategic gap, the BMI Pool will function as a domestically controlled
insurance mechanism catering to Indian-flagged vessels, Indian-controlled
ships, and vessels engaged in trade linked to Indian ports. Backed by sovereign
assurance, the pool is expected to enhance resilience and ensure continuity of
trade under all circumstances.
The BMI Pool will
offer comprehensive coverage across key maritime risk segments, including Hull
and Machinery, Cargo, Protection & Indemnity (P&I), and War Risks.
Policies will be issued by participating insurers who are members of the pool,
leveraging a combined underwriting capacity of approximately ₹950 crore.
Beyond risk coverage,
the initiative is poised to significantly strengthen India’s domestic
capabilities in marine insurance. It will facilitate the development of
specialized underwriting expertise, efficient claims management systems, and
legal proficiency tailored to India’s shipping and regulatory environment.
This, in turn, will reduce reliance on foreign entities and bolster the
country’s long-term maritime self-reliance.
A dedicated Governing Body will be constituted to oversee the structure, operations, and performance of the BMI Pool, ensuring transparency, efficiency, and alignment with national interests.
The government underscored that the sovereign guarantee backing the pool is a strategic intervention aimed at reinforcing India’s economic security. It reflects a broader vision of enhancing self-reliance, safeguarding trade flows, and building resilience against external shocks, including sanctions and geopolitical disruptions.
