Govt. Launches Bharat Maritime Insurance Pool
- 13 May 2026
On 12th May 2026, the Department of Financial Services (DFS) under the Ministry of Finance launched the Bharat Maritime Insurance Pool (BMIP) with a total capacity of USD 1.5 billion to strengthen India’s maritime insurance security amid rising geopolitical risks.
Key Points
- Launch of BMIP: The Bharat Maritime Insurance Pool (BMIP) was launched to provide uninterrupted maritime insurance coverage for Indian-linked shipping operations.
- Sovereign Guarantee: The government has provided a sovereign guarantee of USD 1.4 billion (₹12,980 crore) to support the mechanism.
- Reason for Initiative: The pool aims to address disruptions in maritime insurance caused by geopolitical tensions, especially developments in the Middle East.
- Coverage Scope: BMIP will cover hull and machinery, cargo, protection and indemnity (P&I), and war-related maritime risks.
- Beneficiary Vessels: Coverage will apply to Indian-flagged and India-linked ships.
- Reducing Foreign Dependence: The initiative seeks to reduce reliance on foreign reinsurers and improve India’s self-reliance in maritime risk management.
- Operational Rollout: The first Marine Hull & Machinery War Policy under BMIP was issued by The New India Assurance Company Limited to M/s Hoger Offshore and Marine Private Limited.
- Pool Administrator: General Insurance Corporation of India (GIC Re) will function as the pool administrator.
- Risk Management Mechanism: Claims up to USD 100 million will be covered through pooled capacity, while larger claims will be supported through the sovereign guarantee after reserves and reinsurance are exhausted.
- Governance Structure: A governing body and underwriting committee have been established for oversight and prudent risk management.
- Strategic Importance: The initiative is expected to strengthen India’s maritime trade security, shipping continuity, and financial sovereignty in global logistics.
