India Launches Bharat Maritime Insurance Pool

India launched the Bharat Maritime Insurance Pool (BMIP) in New Delhi on 12 May 2026. The pool provides insurance cover for Indian vessels on international sea routes, including war-risk and high-risk zones, and it has a total value of USD 1.5 billion with a sovereign guarantee of USD 1.4 billion.

What is the Bharat Maritime Insurance Pool?

The Bharat Maritime Insurance Pool is a domestic insurance arrangement for maritime risks. It covers Hull and Machinery insurance, Cargo insurance, Protection and Indemnity (P&I) insurance, and War Risk insurance. The pool was approved by the Union Cabinet in April 2026. The approval came amid higher insurance premiums and uncertainty in maritime coverage linked to geopolitical instability.

Institutional Framework and Coverage

General Insurance Corporation of India (GIC Re) administers the pool. Member insurers use their combined underwriting capacity to issue policies under the arrangement. The pool can service claims up to USD 100 million from its own capacity. Claims beyond this limit can use the sovereign guarantee as a contingent backstop after reserves and member contributions are exhausted.

Maritime Insurance Terms in Focus

Hull and Machinery insurance covers physical damage to a ship and its machinery. Cargo insurance covers loss or damage to goods carried by sea. Protection and Indemnity insurance covers third-party liabilities, including injury, pollution, and collision-related claims. War Risk insurance covers losses caused by war, piracy, terrorism, and related hostile acts. Such cover is used for vessels operating through conflict-prone sea routes.

Important Facts for Exams

• India was previously the only major country without its own Protection and Indemnity club.
• New India Assurance Co Ltd issued the first Marine Hull and Machinery War Policy under the pool.
• Hoger Offshore and Marine Pvt Ltd received the first Marine Hull and Machinery War Policy document under BMIP.
• Vedanta Sterlite Copper Ltd and Balrampur Chini Mills Limited received Marine Cargo War Policy documents under BMIP.

Maritime Insurance and Trade

Maritime insurance is a commercial risk-transfer mechanism used in sea transport and shipping finance. It is linked to international trade because cargo movement and vessel operations depend on insurance cover for port calls, transit, and war-risk routes. The BMIP is designed to reduce dependence on foreign insurers and reinsurers. It also provides a domestic framework for maritime risk cover during periods of global uncertainty.