New Delhi: Department of Financial Services launched the Bharat Maritime Insurance Pool (BMIP) with a total size of USD 1.5 billion. The initiative includes a sovereign guarantee of USD 1.4 billion, equivalent to ₹12,980 crore. Officials introduced the pool to ensure uninterrupted maritime insurance coverage amid Middle East tensions.
The pool covers major maritime risks under the Bharat Maritime Insurance Pool framework. These include Hull and Machinery, Cargo, Protection and Indemnity, and War risk. It applies to Indian-flagged vessels and vessels controlled by Indian entities. It also covers ships travelling to or from India.
Secretary, DFS M. Nagaraju chaired the launch event. He handed over the first Marine Hull and Machinery War Policy to M/s. Hoger Offshore and Marine Private Limited. The policy was issued by The New India Assurance Co. Ltd. under the new pool arrangement.
He also presented a Marine Cargo War Policy to M/s. Vedanta Sterlite Copper Ltd. The policy covers cable wire imports. In addition, a policy was issued to Balrampur Chini Mills Limited. These steps mark operational rollout of the Bharat Maritime Insurance Pool.
Bharat Maritime Insurance Pool strengthens sovereign maritime cover
Officials said the pool addresses risks arising from sanctions and geopolitical tensions. Foreign reinsurers may withdraw coverage in high-risk regions. Therefore, shipping operations can face disruption without domestic backup support.
The Bharat Maritime Insurance Pool will provide sufficient underwriting capacity through member insurers. GIC Re will act as the pool administrator. It will manage returns, reinsurance details and performance statements.
A Governing Body will oversee operations and approve sovereign guarantee invocation. In addition, an Underwriting Committee will ensure prudent risk assessment. Member insurers will issue policies using combined capacity. They will share risks in proportion to their commitments.
For claims up to USD 100 million, the pool will settle payments using its own resources. For higher claims, the sovereign guarantee will act as a last-resort backstop. However, this will occur only after exhausting reserves, member contributions and reinsurance arrangements.
Officials stated that the Bharat Maritime Insurance Pool will strengthen sovereign control over maritime trade. It will support uninterrupted trade flows and enhance India’s financial security framework. Consequently, the initiative aims to reinforce resilience in global shipping operations.
