- On May 12, 2026, the Government of India launched the ‘Bharat Maritime Insurance Pool’ (BMIP) in New Delhi.
- The objective of this initiative is to provide comprehensive insurance coverage to Indian vessels and maritime trade operating along international shipping routes.
- Specifically, vessels operating in sensitive maritime zones and those exposed to war risks will receive a significant protective shield through this initiative.
- The total size of this insurance pool has been set at US$ 1.5 billion, which includes a sovereign guarantee of US$ 1.4 billion.
- The Bharat Maritime Insurance Pool has been developed as an indigenous maritime insurance system with the aim of reducing the Indian shipping and trade sectors' reliance on foreign insurance companies.
- Under this framework, facilities such as Hull and Machinery insurance, Cargo insurance, Protection and Indemnity (P&I) cover, and War Risk insurance will be provided.
- The Central Government had approved this scheme in April 2026.
- In recent years, maritime insurance premiums had witnessed a rapid surge due to global geopolitical tensions and escalating security threats along shipping routes.
- Keeping these challenges in mind, India has taken this significant step towards establishing its own independent and robust maritime insurance framework.
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