The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved the establishment of a domestic insurance pool known as the ‘Bharat Maritime Insurance Pool’ (BMI Pool). The initiative is backed by a sovereign guarantee of ₹12,980 crore to ensure the continuous availability of maritime insurance coverage for Indian trade.
The BMI Pool aims to safeguard Indian-flagged or controlled vessels, as well as those carrying cargo to or from Indian ports, including when transiting volatile maritime corridors. It addresses growing concerns over global volatility, geopolitical instability, and rising insurance costs that have disrupted maritime trade and increased risks to vessels and cargo.
India has traditionally relied heavily on the International Group of Protection and Indemnity (IGP&I) Clubs for key third-party liability insurance, covering areas such as oil pollution, wreck removal, cargo damage, crew injury, and collision liabilities. However, geopolitical tensions and the potential for sanctions have highlighted the vulnerability of this dependence, prompting the need for a sovereign-backed domestic mechanism to maintain continuity of trade.
The new pool will provide comprehensive coverage for all major maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risks. Policies will be issued by member insurers using the Pool’s combined underwriting capacity of around ₹950 crore. This domestic arrangement is expected to enable more tailored insurance solutions suited to Indian shipping conditions and regulatory requirements, while also fostering the development of specialised marine underwriting, claims management, and legal expertise within the country.
A Governing Body will be constituted to oversee the formation and operations of the BMI Pool. The provision of the sovereign guarantee is intended to strengthen India’s self-reliance in maritime insurance, enhance resilience against international sanctions, and provide greater sovereign control over critical trade infrastructure.
Officials described the move as essential for ensuring that Indian trade retains access to affordable and reliable insurance coverage amid heightened global uncertainties. The initiative forms part of broader efforts to bolster India’s maritime sector and reduce external dependencies in strategic areas.
