Bharat Maritime Insurance Pool:
The Union Cabinet has approved the creation of the ‘Bharat Maritime Insurance Pool (BMI Pool)’, a domestic insurance pool with a sovereign guarantee of Rs 12,980 crore to ensure continuous and affordable maritime insurance coverage amid global uncertainties.
- Objective is to reduce dependence on foreign insurers such as the International Group of Protection and Indemnity Clubs, ensure continuity of maritime trade, and enhance sanctions resilience and sovereign control during geopolitical instability.
- The pool covers major maritime risks, including Hull and Machinery, Cargo, War risk, and Protection and Indemnity (P&I), which includes third-party liabilities such as oil pollution, wreck removal, cargo damage and crew injury.
- Coverage is provided for Indian flagged or controlled vessels, as well as any vessel carrying cargo from international origins to Indian ports (and vice-versa), including transits through volatile maritime corridors.
- Policies will be issued by insurers who are members of the pool, leveraging a combined underwriting capacity of around Rs. 950 crore.
- A newly constituted Governing Body will oversee the pool.
- This initiative aims to develop specialized marine underwriting, claims management, and legal expertise locally, directly aligning with the vision of self-reliance (Atmanirbhar Bharat).
- Strengthens economic security and ensures continuity of maritime trade by reducing dependence on foreign insurers in a sector handling over 70% of India’s trade by volume and 95% by value, while aligning with global best practices followed by countries like the United Kingdom, Japan and South Korea.
