Amid heightened geopolitical tensions in West Asia and broader global uncertainty, the Indian government has moved to strengthen the country's maritime trade resilience through a major insurance initiative.
In a Cabinet meeting chaired by Prime Minister Narendra Modi on 18 April, the government approved the creation of a domestic insurance pool backed by a sovereign guarantee of INR129.8bn ($1.55bn).
The initiative, named the Bharat Maritime Insurance Pool (BMI Pool), is designed to provide stable and cost-effective insurance coverage for Indian-flagged vessels as well as ships affiliated with Indian interests, regardless of their international trading routes.
The pool will offer protection across key maritime risks, including hull and machinery damage, freight cover, third-party liability (P&I), as well as war and conflict-related risks, aiming to ensure continuity and stability in India’s shipping and trade operations even amid elevated global volatility.
An official statement from the government said that under the new insurance pool, insurers will jointly underwrite policies with a total capacity of around INR9.5bn.
The initiative is expected to strengthen India’s domestic insurance and risk management capabilities by pooling industry capacity and retaining more underwriting within the country.
It is also aimed at advancing self-reliance in marine insurance, while supporting the development of local expertise in areas such as underwriting, claims management and maritime legal services tailored to the needs of India’s shipping industry.