Bharat Maritime Insurance Pool: How will it complement international legacy players?
BMIP, launched by government, will function complimentary to international insurers as its global recognition requires time
- Jul 8, 2026,
- Updated Jul 8, 2026 1:09 PM IST
The Bharat Maritime Insurance Pool will function as a strategic complement to existing international coverage rather than a replacement. This is not so much a reflection of a shortcoming in the pool’s design but a function of how global maritime commerce operates, experts say.
Aliasgar Hajee, CEO of Shipbuilding and Ship Management at SHM Group, says that at this stage, most shipowners would evaluate BMIP as part of a broader risk management strategy rather than view it through an either/or lens.
“Insurance decisions are influenced by operational requirements, trading routes, lender expectations and regulatory considerations. Over time, the market will determine the optimal balance between domestic and international coverage solutions,” says Hajee.
International counterparties, including lenders, ship charterers and port authorities, operate within frameworks that carry deeply established expectations around insurer recognition and financial standing.
Gautam Bhatikar of Phoenix Legal says certificates issued by international P&I Club members carry legal weight across virtually every major port and arbitration forum in the world. For BMIP to achieve that recognition will require time, demonstrated performance, and a track record of credible claims settlement.
“Where BMIP’s value becomes immediately apparent, and potentially indispensable, is in scenarios where international coverage is withdrawn or rendered commercially untenable. War-risk coverage in volatile corridors such as the Red Sea and the Strait of Hormuz is the clearest example,” says Bhatikar.
“In such situations, BMIP serves not merely as a complement but as the only viable alternative, ensuring that Indian trade is not held hostage to decisions made in foreign insurance markets in response to geopolitical developments entirely outside India’s control. That function alone justifies its existence,” he says.
The sustainability of any domestic maritime insurance framework will depend on active participation by shipowners, operators, insurers, brokers and other maritime stake holders, says Harsh B. Buch, founding partner at law firm Orion Counsel. BMIP should not be viewed merely as an insurance initiative but as a maritime sovereignty initiative. “Recent geopolitical events— from sanctions regimes and disruptions in the Red Sea to fragmentation of global trade— have demonstrated that access to maritime insurance can become a strategic vulnerability,” says Buch.
For decades, Indian shipping has operated with a fundamental vulnerability—over-reliance on foreign insurers, particularly the International Group of P&I Clubs, for coverage that is essential to the continuity of trade.
The Bharat Maritime Insurance Pool will function as a strategic complement to existing international coverage rather than a replacement. This is not so much a reflection of a shortcoming in the pool’s design but a function of how global maritime commerce operates, experts say.
Aliasgar Hajee, CEO of Shipbuilding and Ship Management at SHM Group, says that at this stage, most shipowners would evaluate BMIP as part of a broader risk management strategy rather than view it through an either/or lens.
“Insurance decisions are influenced by operational requirements, trading routes, lender expectations and regulatory considerations. Over time, the market will determine the optimal balance between domestic and international coverage solutions,” says Hajee.
International counterparties, including lenders, ship charterers and port authorities, operate within frameworks that carry deeply established expectations around insurer recognition and financial standing.
Gautam Bhatikar of Phoenix Legal says certificates issued by international P&I Club members carry legal weight across virtually every major port and arbitration forum in the world. For BMIP to achieve that recognition will require time, demonstrated performance, and a track record of credible claims settlement.
“Where BMIP’s value becomes immediately apparent, and potentially indispensable, is in scenarios where international coverage is withdrawn or rendered commercially untenable. War-risk coverage in volatile corridors such as the Red Sea and the Strait of Hormuz is the clearest example,” says Bhatikar.
“In such situations, BMIP serves not merely as a complement but as the only viable alternative, ensuring that Indian trade is not held hostage to decisions made in foreign insurance markets in response to geopolitical developments entirely outside India’s control. That function alone justifies its existence,” he says.
The sustainability of any domestic maritime insurance framework will depend on active participation by shipowners, operators, insurers, brokers and other maritime stake holders, says Harsh B. Buch, founding partner at law firm Orion Counsel. BMIP should not be viewed merely as an insurance initiative but as a maritime sovereignty initiative. “Recent geopolitical events— from sanctions regimes and disruptions in the Red Sea to fragmentation of global trade— have demonstrated that access to maritime insurance can become a strategic vulnerability,” says Buch.
For decades, Indian shipping has operated with a fundamental vulnerability—over-reliance on foreign insurers, particularly the International Group of P&I Clubs, for coverage that is essential to the continuity of trade.