The Ministry of Ports, Shipping and Waterways has established the Bharat Maritime Insurance Pool (BMIP), India’s first domestically-managed maritime insurance scheme. Launched in May 2026 with a total underwriting capacity of ₹13,906.50 crore (USD 1.5 billion) and government backing of ₹12,980 crore (USD 1.4 billion), the pool aims to insure Indian-flagged vessels, ships owned or managed by Indian entities, and cargo moving to or from India. The scheme addresses India’s heavy reliance on foreign insurance providers, which has resulted in an annual outflow of USD 45–60 million in premiums and left the country vulnerable to coverage disruptions during global conflicts or geopolitical tensions.
Key facts
- Underwriting capacity: ₹13,906.50 crore (USD 1.5 billion)
- Sovereign guarantee backing: ₹12,980 crore (USD 1.4 billion)
- Launch date: 12 May 2026
- Cabinet approval: 18 April 2026
- Duration: 10 years, extendable to 15 years
- Policies issued as of 7 September 2026: 3,000 Cargo War policies, 92 Hull War-risk policies, 3 Protection and Indemnity policies
- War-risk premium reduction: 35–40% since peak West Asia conflict
- Pool Administrator: General Insurance Corporation of India
- Indian-flagged fleet size: 1,609 ships with 14.33 million gross tonnes (mid-2026)
- Ports handled: 1,668 million metric tonnes of cargo in 2025–26
What the pool covers
The BMIP provides four main categories of marine insurance coverage. Hull and Machinery War coverage protects the physical structure and propulsion systems of vessels against damage. Cargo War coverage safeguards goods transported by sea against loss or damage, particularly relevant for importers and exporters using conflict-affected routes. Protection and Indemnity (P&I) coverage addresses liabilities such as pollution, crew injuries, wreck removal, and cargo damage claims. War Perils coverage shields against losses from armed conflict, piracy, terrorism, and hostile vessel seizure, which is critical for ships transiting high-risk zones like the Red Sea and the Strait of Hormuz.
Why India needed this pool
India is heavily dependent on maritime trade, with 95 per cent of trade value and 70 per cent of trade volume flowing through sea routes. Despite this critical reliance, the country has been almost entirely dependent on 13 international Protection and Indemnity clubs, most based in Western countries, which collectively insure about 90 per cent of the world’s large ships. This concentration left Indian shipowners vulnerable to sudden coverage withdrawals, premium spikes, or politically influenced decisions. Recent conflicts in the Red Sea and tensions near the Strait of Hormuz demonstrated this vulnerability: foreign insurers either stopped providing cover or significantly increased premiums, raising costs sharply for ship owners. The BMIP was designed to establish a sovereign, domestic alternative that ensures affordable and uninterrupted coverage during global disruptions, while also building indigenous expertise in marine underwriting and claims management.
How the pool operates
Domestic insurers that are pool members issue policies using their collective underwriting capacity. The risks covered by these policies are then reinsured collectively by all pool members in proportion to the capacity each has committed. Claims up to USD 100 million are settled through accumulated reserves and reinsurance recoveries. For claims exceeding USD 100 million, the sovereign guarantee activates only after complete exhaustion of pool reserves, ensuring the government’s backing is used responsibly. The General Insurance Corporation of India serves as the pool administrator, managing daily operations and submitting performance reports. A Governing Body oversees pool operations and compliance, while an Underwriting Committee ensures sound and consistent risk evaluation to maintain long-term financial sustainability.
Eligibility and scope
The pool covers Indian-flagged vessels, vessels owned, managed, or controlled by Indian entities, and cargo vessels destined to or starting from India. This broad eligibility extends coverage not only to shipping companies but also to industrial importers, commodity traders, manufacturers, and other businesses moving goods by sea. For example, policies have been issued to Shipping Corporation of India Limited, industrial copper importers, and sugar manufacturers, demonstrating that the pool serves the wider Indian economy beyond shipping companies alone.
What this means for you
Shipowners and maritime businesses now have access to domestically-provided insurance at competitive rates, with war-risk premiums having fallen 35–40 per cent since the pool’s launch. Indian manufacturers and traders importing goods by sea benefit from reliable coverage that is no longer subject to geopolitical pressures or foreign policy decisions. Exporters gain assurance that their shipments will be insured even during global conflicts. The pool also contributes to India’s broader maritime economy: with India’s coastline extending over 11,000 kilometres, 12 major ports, 217 non-major ports, and maritime livelihoods supporting over 30 million people including fishers, port workers, seafarers, and shipbuilders, a sovereign insurance mechanism strengthens the entire maritime ecosystem.
What happens next
The pool has already begun full commercial operations with systems for underwriting, claims, and regulatory compliance in place. The medium-term focus remains on strengthening human capital, legal frameworks, and reinsurance partnerships to enhance resilience while minimizing reliance on sovereign backing. In the long term, the pool is expected to emerge as a regional anchor for maritime insurance in the Indian Ocean Region, positioning India as a provider of maritime financial services and a shaper of maritime risk standards globally.