In a strategic move to safeguard India’s trade lifelines, the Union Cabinet 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 trade amid rising global uncertainties.
Ensuring continuity amid global turbulence
The proposed pool comes at a time when geopolitical tensions and volatile shipping corridors are pushing up insurance premiums and disrupting coverage availability. The BMI Pool is designed to provide continuous insurance support for vessels transporting cargo to and from Indian ports, even during periods of heightened global risk.
Reducing reliance on global insurers
India’s shipping ecosystem has traditionally depended heavily on international players such as the International Group of Protection and Indemnity Clubs for critical protection and indemnity (P&I) coverage. These policies cover third-party liabilities including oil spills, cargo damage, crew risks, collision liabilities, and wreck removal.
The new domestic pool seeks to reduce this dependence, particularly in scenarios where global insurers may withdraw coverage due to sanctions or geopolitical pressures.
Comprehensive risk coverage
The BMI Pool will offer a full spectrum of maritime insurance solutions, including hull and machinery, cargo, P&I, and war risk coverage. Policies will be issued by participating insurers leveraging a combined underwriting capacity of around ₹950 crore, ensuring robust risk absorption.
Building domestic capability
Beyond risk coverage, the initiative is expected to strengthen India’s domestic insurance ecosystem by developing specialised capabilities in marine underwriting, claims management, and legal expertise tailored to Indian shipping conditions and regulatory frameworks.
Governance and sovereign assurance
A dedicated governing body will oversee the pool’s structure and operations, ensuring transparency and efficiency. The sovereign guarantee underlines the government’s intent to enhance self-reliance, build sanctions resilience, and retain strategic control over critical trade infrastructure.
Strengthening trade resilience
With the launch of the BMI Pool, India is taking a decisive step toward insulating its maritime trade from external shocks. The move not only secures insurance continuity but also positions the country to build long-term capabilities in a strategically vital sector.