Cabinet approves Bharat Maritime Insurance Pool with ₹12,980 crore guarantee
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the creation of the Bharat Maritime Insurance Pool to ensure continuous and affordable insurance coverage for India’s maritime trade.
The government introduced the initiative with a sovereign guarantee of ₹12,980 crore. This move aims to reduce dependence on foreign insurers while protecting Indian shipping from global uncertainties.
Domestic insurance pool to strengthen maritime security
The new mechanism will cover major maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and war-related risks. It will also insure vessels carrying cargo to and from Indian ports, even while passing through high-risk maritime zones.
Amid rising geopolitical tensions, insurance costs have increased sharply. Consequently, shipping companies have faced uncertainty in accessing reliable coverage. This initiative addresses those challenges by offering a stable domestic alternative.
Currently, many Indian vessels rely on international insurance groups for liability coverage. However, such dependence exposes them to risks like sanctions or sudden withdrawal of services. Therefore, the government has moved to build a self-reliant system.
New framework to reduce external dependence
Member insurance companies will issue policies under the pool using a combined underwriting capacity of about ₹950 crore. In addition, the framework will help develop domestic expertise in marine underwriting, claims management, and legal services.
A governing body will oversee operations to ensure efficiency and transparency. Moreover, the sovereign guarantee is expected to enhance financial stability and build trust among stakeholders.
The government said the step aligns with its broader goal of strengthening self-reliance and ensuring uninterrupted trade. As a result, the initiative is likely to improve resilience against global disruptions and support the growth of India’s maritime sector.
