Cabinet Clears ₹12,980 Cr Maritime Insurance Pool

• Cabinet approves Bharat Maritime Insurance Pool (BMI)
• ₹12,980 crore sovereign guarantee announced
• Covers cargo, vessels, war risk and liabilities
• Aims to reduce dependence on foreign insurers

GG News Bureau
New Delhi, 18th April: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the creation of a ‘Bharat Maritime Insurance Pool’ (BMI Pool) with a sovereign guarantee of ₹12,980 crore to ensure uninterrupted insurance coverage for India’s maritime trade.

The initiative aims to safeguard Indian shipping interests amid rising global volatility and geopolitical tensions that have disrupted insurance availability and increased costs.

Reducing External Dependence

The BMI Pool is designed to reduce reliance on foreign insurers, particularly global Protection and Indemnity (P&I) clubs, which currently dominate maritime liability coverage.

Officials said the move will strengthen India’s self-reliance and ensure continuity of trade even during sanctions or geopolitical disruptions.

Comprehensive Risk Coverage

The pool will cover a wide range of maritime risks, including:

• Hull and Machinery
• Cargo insurance
• Protection & Indemnity (P&I) liabilities
• War and conflict-related risks

It will also insure vessels carrying cargo between India and global destinations, including those transiting high-risk maritime corridors.

Boost to Domestic Capability

Policies under the pool will be issued by member insurers using a combined underwriting capacity of around ₹950 crore.

The initiative is expected to develop domestic expertise in marine underwriting, claims management and legal frameworks tailored to Indian shipping needs.

Strategic Move for Trade Security

The government said the sovereign guarantee will ensure stability and confidence in the system, helping Indian trade remain resilient in uncertain global conditions.

A governing body will be set up to oversee the functioning of the BMI Pool and ensure efficient implementation.