New Delhi: The Union Cabinet has approved the creation of the Bharat Maritime Insurance Pool, a domestic insurance mechanism backed by a sovereign guarantee of ₹12,980 crore, aimed at ensuring uninterrupted and affordable maritime insurance coverage for Indian trade.
The Bharat Maritime Insurance Pool is designed to safeguard Indian shipping interests amid rising global volatility and geopolitical instability.
The initiative seeks to reduce dependence on foreign insurers while ensuring that vessels carrying cargo to and from Indian ports continue to receive comprehensive insurance protection—even when navigating high-risk maritime corridors.
Addressing Global Risks and Insurance Dependency
The approval of the Bharat Maritime Insurance Pool comes at a time when maritime trade is increasingly exposed to global uncertainties.
Heightened geopolitical tensions and disruptions have led to rising insurance costs and concerns over the availability of continuous coverage for vessels and cargo.
Currently, Indian vessels rely significantly on the International Group of Protection and Indemnity (IGP&I) Clubs for Protection and Indemnity (P&I) insurance.
These cover third-party liabilities such as oil pollution, wreck removal, cargo damage, crew injury, repatriation, and collision liabilities.
The Bharat Maritime Insurance Pool aims to reduce this external dependency by creating a domestic alternative capable of handling such risks.
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Comprehensive Coverage Across Maritime Risks
The Bharat Maritime Insurance Pool will provide coverage across a wide range of maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risk.
The initiative will cover Indian-flagged or controlled vessels, as well as ships carrying cargo from any international origin to Indian ports and vice versa.
Importantly, the Bharat Maritime Insurance Pool ensures coverage continuity even when vessels transit through volatile maritime routes, thereby protecting trade flows and minimizing disruptions.
Bharat Maritime Insurance Pool: Operational Framework and Capacity
Under the approved structure, policies will be issued by insurers who are members of the pool, leveraging a combined underwriting capacity estimated at approximately ₹950 crore.
The Bharat Maritime Insurance Pool will operate under the supervision of a designated governing body responsible for overseeing its formation and functioning.
The pool is also expected to foster the development of domestic expertise in marine underwriting, claims management, and legal frameworks tailored to Indian shipping conditions and regulatory requirements.
Boost to Self-Reliance and Sovereign Control
The government has extended a sovereign guarantee to the Bharat Maritime Insurance Pool to reinforce its credibility and operational strength.
This move aligns with broader objectives of enhancing self-reliance, building resilience against sanctions, and ensuring greater sovereign control over critical maritime insurance infrastructure.
By establishing the Bharat Maritime Insurance Pool, the government aims to secure India’s maritime trade ecosystem against external shocks while strengthening domestic capabilities in marine insurance.
