The Department of Financial Services under the Union Ministry of Finance launched the ‘Bharat Maritime Insurance Pool’ (BMIP) with a capacity of USD 1.5 billion, backed by a sovereign guarantee of USD 1.4 billion (₹12,980 crore), to strengthen India’s maritime insurance security.
The initiative aims to reduce dependence on foreign insurers and protect India’s shipping and trade operations from disruptions caused by sanctions, high-risk zones or withdrawal of international insurance support.
The pool will provide Protection and Indemnity (P&I) insurance covering liabilities such as oil pollution, wreck removal, cargo damage, crew injury and collision liabilities, while enhancing sovereign control over maritime trade and insurance risks.
GIC Re has been appointed as the pool administrator, and a governing body will oversee the functioning of the pool and invocation of the sovereign guarantee whenever required.
Claims up to USD 100 million will be handled through the pool’s own underwriting capacity, while the sovereign guarantee will act as a contingent backstop for larger claims beyond that limit.
Source: PIB
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