Our Bureau
New Delhi
In a major move to safeguard India’s overseas trade from escalating geopolitical tensions, the Centre has launched the Bharat Maritime Insurance Pool (BMIP), a sovereign-backed maritime insurance mechanism with a government guarantee of $1.5 billion. The initiative aims to ensure uninterrupted insurance coverage for Indian vessels and cargo navigating conflict-prone international waters, particularly as global insurers have become increasingly cautious following the conflict in West Asia.
The new insurance pool will provide comprehensive coverage, including hull and machinery, cargo, protection and indemnity (P&I), and war-risk insurance for Indian-flagged or Indian-controlled vessels, as well as ships carrying cargo to and from Indian ports. Officials said the mechanism is designed to reduce India’s dependence on foreign insurers and reinsurers while ensuring that maritime trade continues despite disruptions in global insurance markets.
The decision follows a sharp rise in maritime insurance premiums after hostilities in West Asia heightened risks along critical shipping routes such as the Strait of Hormuz. Industry estimates suggested war-risk premiums had surged dramatically, prompting concerns over higher freight costs and possible disruptions to India’s import and export supply chains.
The BMIP will operate as a domestic insurance pool backed by the sovereign guarantee, enabling Indian insurers to underwrite large maritime risks with greater financial confidence. The government believes the initiative will strengthen the resilience of India’s shipping ecosystem while supporting exporters, importers and shipowners facing volatile global conditions.
The launch also aligns with the government’s broader strategy to develop India’s maritime sector under the Maritime India Vision 2030 by enhancing domestic capabilities across shipping, logistics and marine insurance. Officials said the new framework would help protect trade flows, improve risk management and reinforce India’s maritime sovereignty at a time when global supply chains continue to face geopolitical uncertainty.