India Launches Sovereign-Backed Maritime Liability Insurance

India launched its first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP) on 30 July 2026. The product was issued by The New India Assurance Company Limited and handed over to the Shipping Corporation of India Ltd. by the Department of Financial Services.

Protection and Indemnity Insurance

Protection and Indemnity insurance is a marine liability cover used in shipping for third-party claims. It generally covers crew claims, cargo claims, pollution liability, wreck removal, and other liabilities arising from vessel operations.

Bharat Maritime Insurance Pool

The Bharat Maritime Insurance Pool became operational on 12 May 2026 with a sovereign guarantee of ₹12,980 crore, which is about 1.4 billion. The pool provides combined underwriting capacity for maritime risks and offers an indemnity limit of up to 1.5 billion for the P&I cover.

Maritime Risk Coverage in India

The BMIP was created to cover Hull and Machinery, Cargo, P&I, and War risk insurance. It was approved by the Union Cabinet on 18 April 2026 and was designed to reduce dependence on foreign insurers in specialised marine insurance.

Important Facts for Exams

• The first P&I policy under BMIP was issued on 30 July 2026.
• The BMIP had issued 1,608 policies by 29 July 2026 for cargo war-risk and hull war-risk insurance.
• War-risk insurance premiums fell by about 35–40 per cent from peak levels during the West Asia conflict.
• P&I insurance is a standard marine liability cover in global shipping and is often linked to mutual insurance clubs.

Marine Insurance in India

Marine insurance in India includes Hull and Machinery insurance, Cargo insurance, War-risk insurance, and Protection and Indemnity insurance. The BMIP is a pooled mechanism for underwriting maritime risks within India.