To address insurance constraints faced by shippers amid the West Asia conflict, the government on Sunday announced the creation of a ‘Bharat Maritime Insurance Pool’ (BMIP), backed by a sovereign guarantee. The move is expected to immediately reduce insurance costs for vessels operating on war-affected routes by about 25 per cent.

“The pool will have a sovereign guarantee of ₹12,980 crore to ensure uninterrupted maritime insurance coverage,” Information & Broadcasting Minister Ashwini Vaishnaw said at a media briefing.

In addition, the pool will have a corpus of ₹930 crore, with contributions from GIC Re (₹400 crore), public sector general insurers (₹200 crore), and the balance from private insurers.

Tailored to Indian needs

“Policies will be issued by member insurers using the pool’s combined underwriting capacity of around ₹930 crore,” an official statement said. The pool aims to manage liability insurance domestically, tailored to Indian shipping conditions and regulatory requirements, while building specialised capabilities in marine underwriting, claims management and legal expertise within the country.

The cover will extend to India-flagged vessels, India-controlled vessels, and those with India as origin or destination. The scheme will initially run for 10 years, with the option to extend for up to 15 years. It is also expected to reduce dependence on foreign insurers, facilitate reciprocal insurance arrangements, and lower foreign-exchange outgoings on premiums.

The pool will cover a full spectrum of maritime risks, including hull and machinery, cargo, protection and indemnity (P&I), and war risk.

A governing body will be constituted to oversee the formation and operations of the pool. “The sovereign guarantee is aimed at strengthening self-reliance, enhancing sanctions resilience, and ensuring greater sovereign control,” the statement added.

Published on April 18, 2026