Rs 12,980 crore backing: Govt clears Bharat Maritime Insurance Pool to cut reliance on global cover
The move comes against a backdrop of rising global volatility and geopolitical instability that have increased risks for cargo and vessels, pushing up insurance costs and creating uncertainty around coverage availability.
- Apr 18, 2026,
- Updated Apr 18, 2026 4:09 PM IST
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the creation of the ‘Bharat Maritime Insurance Pool’ (BMI pool) with a sovereign guarantee of Rs 12,980 crore, aimed at ensuring uninterrupted and affordable maritime insurance coverage for Indian trade.
The move comes against a backdrop of rising global volatility and geopolitical instability that have increased risks for cargo and vessels, pushing up insurance costs and creating uncertainty around coverage availability. The domestic pool is designed to reduce India’s dependence on external insurers and safeguard trade flows even through volatile maritime corridors.
The BMI pool will cover a comprehensive range of maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risks. It will extend to Indian-flagged vessels as well as those carrying cargo to and from Indian ports, regardless of origin.
Currently, Indian vessels rely heavily on international insurance providers such as the International Group of Protection and Indemnity (IGP&I) Clubs for third-party liability coverage, including oil pollution, wreck removal, cargo damage, crew injury, and collision liabilities. The government noted that this dependence poses risks, particularly in scenarios involving sanctions or geopolitical tensions that could disrupt coverage.
Under the new framework, policies will be issued by insurers participating in the pool, leveraging a combined underwriting capacity of around Rs 950 crore. The initiative is also expected to build domestic expertise in marine underwriting, claims management, and legal processes tailored to Indian shipping conditions.
A governing body will be set up to oversee the pool’s formation and operations. The sovereign guarantee underpinning the pool is intended to strengthen self-reliance, enhance resilience against sanctions, and ensure greater control over critical insurance infrastructure linked to India’s maritime trade.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the creation of the ‘Bharat Maritime Insurance Pool’ (BMI pool) with a sovereign guarantee of Rs 12,980 crore, aimed at ensuring uninterrupted and affordable maritime insurance coverage for Indian trade.
The move comes against a backdrop of rising global volatility and geopolitical instability that have increased risks for cargo and vessels, pushing up insurance costs and creating uncertainty around coverage availability. The domestic pool is designed to reduce India’s dependence on external insurers and safeguard trade flows even through volatile maritime corridors.
The BMI pool will cover a comprehensive range of maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risks. It will extend to Indian-flagged vessels as well as those carrying cargo to and from Indian ports, regardless of origin.
Currently, Indian vessels rely heavily on international insurance providers such as the International Group of Protection and Indemnity (IGP&I) Clubs for third-party liability coverage, including oil pollution, wreck removal, cargo damage, crew injury, and collision liabilities. The government noted that this dependence poses risks, particularly in scenarios involving sanctions or geopolitical tensions that could disrupt coverage.
Under the new framework, policies will be issued by insurers participating in the pool, leveraging a combined underwriting capacity of around Rs 950 crore. The initiative is also expected to build domestic expertise in marine underwriting, claims management, and legal processes tailored to Indian shipping conditions.
A governing body will be set up to oversee the pool’s formation and operations. The sovereign guarantee underpinning the pool is intended to strengthen self-reliance, enhance resilience against sanctions, and ensure greater control over critical insurance infrastructure linked to India’s maritime trade.