New Delhi, May 12, 2026: The Government of India has launched the Bharat Maritime Insurance Pool (BMIP) with a total capacity of USD 1.5 billion backed by a sovereign guarantee worth USD 1.4 billion (around ₹12,980 crore), to ensure uninterrupted maritime insurance coverage for Indian shipping and trade amid rising tensions in the Middle East.
The initiative was unveiled by the Department of Financial Services (DFS) Ministry of Finance during an event chaired by Senior officials from the finance ministry insurance sector and shipping ministry were present at the launch.
The BMIP has been created to provide insurance coverage for major maritime risks including Hull & Machinery Cargo Protection & Indemnity (P&I) and War Risk. The scheme will cover Indian-flagged vessels, Indian-controlled ships, and vessels operating to or from India.
During the launch ceremony, the first Marine Hull & Machinery War Policy under the BMIP was handed over to the policy was issued by and provides protection against war related risks in high risk maritime zones.
A Marine Cargo War Policy was also issued to for the import of cable wires. Coverage was additionally extended to Officials said the new insurance pool is aimed at reducing India’s dependence on foreign insurers and reinsurance firms particularly during geopolitical crises or sanctions that may lead to withdrawal of international coverage. Concerns have also been raised over India’s reliance on global P&I Clubs for third-party maritime liability insurance.
The BMIP will be administered by (GIC Re), which will manage reinsurance arrangements and monitor the pool’s operations. A Governing Body and an Underwriting Committee have also been established to supervise risk management and policy decisions.
Under the mechanism, claims up to USD 100 million will be handled using the pool’s internal resources and reinsurance support. For claims exceeding that amount the government’s sovereign guarantee will serve as a financial backstop after all available reserves are exhausted.
The government stated that the BMIP will strengthen India’s maritime risk protection system ensure continuity of global trade operations, and enhance the country’s financial and strategic independence in the shipping sector.
