Cabinet launches Bharat Maritime Insurance Pool with ₹12,980 crore backing to protect maritime trade

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the creation of a domestic insurance mechanism called the ‘Bharat Maritime Insurance Pool’ (BMI pool), backed by a sovereign guarantee of ₹12,980 crore. The move is aimed at ensuring uninterrupted maritime insurance coverage for Indian‑linked shipping in an era of heightened global volatility and geopolitical instability.

The Bharat Maritime Insurance Pool (BMI pool) is designed to address the rising risk and cost of maritime insurance, especially for vessels travelling through volatile corridors such as the Persian Gulf and the Strait of Hormuz. By providing a sovereign guarantee, the government seeks to reduce India’s dependence on external insurance providers, including the International Group of Protection and Indemnity (IGP&I) Clubs, for Hull and Machinery, Cargo, Protection and Indemnity (P&I) and War‑risk cover.

The pool will cover Indian‑flagged or controlled vessels, as well as ships destined to or starting from India, with insurance for all major maritime risks. Policies will be issued by a consortium of Indian insurers that are members of the pool, utilising a combined underwriting capacity of around ₹950 crore. A dedicated Governing Body will oversee the formation and functioning of the BMI pool, with the sovereign guarantee intended to strengthen self‑reliance, build sanctions resilience and ensure greater sovereign control over India’s maritime‑trade‑insurance framework.