New Delhi: India has officially launched the Bharat Maritime Insurance Pool (BMIP) with a total capacity of USD 1.5 billion to protect maritime trade and shipping operations.
The scheme comes with a sovereign guarantee of USD 1.4 billion (around ₹12,980 crore) and aims to ensure uninterrupted insurance coverage for Indian-linked vessels during global geopolitical tensions, especially in the Middle East region.
What Is Bharat Maritime Insurance Pool?
The Bharat Maritime Insurance Pool is a domestic maritime insurance system created by the Government of India.
It will provide insurance coverage for:
- Hull and Machinery
- Cargo
- Protection and Indemnity (P&I)
- War risks
The coverage applies to:
- Indian-flagged vessels
- Indian-controlled ships
- Ships coming to India
- Ships leaving India
The main goal is to reduce India’s dependence on foreign insurers and ensure trade continuity even during international conflicts or sanctions.
Why Did India Launch Bharat Maritime Insurance Pool?
The government launched BMIP because global tensions have increased risks for maritime trade.
Key reasons include:
- Rising Middle East conflict risks
- Higher insurance premiums for ships
- Dependence on foreign insurance companies
- Fear of insurance withdrawal during sanctions or wars
India handles more than 70% of trade volume through maritime routes, making uninterrupted insurance support extremely important.
What is Government Sovereign Guarantee
The Indian government has provided a sovereign guarantee of ₹12,980 crore to support the insurance pool.
This guarantee will help:
- Increase insurer confidence
- Handle large maritime claims
- Protect Indian trade routes
- Support high-risk shipping corridors
According to official statements, the pool has an underwriting capacity of around ₹950 crore from member insurers, while the sovereign guarantee acts as additional financial support.
First Insurance Policy Issued Under BMIP
During the launch event, DFS Secretary M. Nagaraju handed over the first Marine Hull & Machinery War Policy document to Hoger Offshore and Marine Private Limited.
The policy was issued by New India Assurance Company Ltd. under the BMIP framework.
Major Officials Present At The Bharat Maritime Insurance Pool Launch
Senior officials attending the launch included:
- M. Nagaraju, Secretary DFS
- Sanjay Lohiya, Special Secretary DFS
- Debasish Prusty, Additional Secretary
- Hitesh Joshi, CMD GIC Re
- Girija Subramanian, CMD New India Assurance
- Kasturi Sengupta, General Insurance Council
The event highlighted the government’s focus on strengthening India’s maritime and financial sovereignty.
How BMIP Can Benefit India
Experts believe BMIP can help India in several ways:
Lower Dependence On Foreign Insurers
Indian shipping companies currently rely heavily on international insurance groups.
Better Trade Security
The pool can maintain coverage during wars, sanctions, or geopolitical crises.
Stronger Maritime Ecosystem
India can develop domestic marine underwriting and claims expertise.
Support For Shipping Industry
The initiative can stabilize insurance costs for shipping companies operating in risky regions.
Impact Of Middle East Tensions
The current tensions in the Middle East have increased uncertainty in global shipping routes.
High-risk corridors like the Strait of Hormuz have seen:
- Rising insurance costs
- Withdrawal of foreign coverage
- Higher operational risks
The government said BMIP will ensure that Indian trade continues smoothly even in volatile maritime regions.
