Indian government launched the $1.5 billion Bharat Maritime Insurance Pool (BMIP). Backed by a $1.4 billion (₹12,980 crore) sovereign guarantee, the initiative is designed to ensure uninterrupted insurance coverage for Indian-linked shipping operations navigating current geopolitical tensions, including the situation in West Asia.
The Department of Financial Services (DFS), operating under the Ministry of Finance, officially launched the initiative during an event chaired by DFS Secretary M. Nagaraju.
Comprehensive Coverage for Shipping Risks
The BMIP is structured to provide domestic underwriting capacity when global market conditions restrict coverage. The pool covers a wide range of maritime risks, including:
Hull and machinery
Cargo
Protection and indemnity (P&I)
War risks
This coverage is extended to Indian-flagged vessels, India-controlled ships, and any vessels traveling to or from Indian ports.
Reducing Reliance on Foreign Reinsurers
According to the Finance Ministry, sanctions can sever insurance support for vessels or cargo linked to sanctioned countries, severely disrupting trade flows. Officials noted the BMIP was created specifically to reduce dependence on foreign reinsurers. By strengthening India’s domestic capacity to manage maritime risks, the pool ensures continuity for shipments passing through high-risk regions or sanction-sensitive trade routes where foreign insurers might withdraw support.
Pool Administration and Claims Structure
To maintain secure and consistent operations, the government has established an underwriting committee to oversee risk assessments and a governing body to manage sovereign guarantee approvals. General Insurance Corporation of India (GIC Re) will act as the pool administrator, handling reporting, reinsurance arrangements, and performance monitoring.
Claims under the BMIP will be processed using a tiered structure:
Up to $100 million: Handled entirely through the pool’s own domestic capacity and member contributions.
Above $100 million: Backed by the $1.4 billion sovereign guarantee, triggered only after reserves, member contributions, and standard reinsurance arrangements are exhausted.
Policies will be issued directly by domestic insurers who are members of the pool, with risks then reinsured among members based on their committed underwriting capacity.
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First Policies Issued
The BMIP became officially operational on Tuesday when The New India Assurance Company Ltd issued the first Marine Hull and Machinery War Policy to Hoger Offshore and Marine Pvt Ltd.
Additional coverage was successfully issued to other major domestic players, including a marine cargo war policy to Vedanta Sterlite Copper Ltd for cable wire imports, and another policy to Balrampur Chini Mills Ltd.