India Launches Maritime Insurance Pool

• 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.