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Centre Clears Rs 12,980 Cr Maritime Insurance Pool To Ensure Shipping Coverage
(MENAFN- KNN India)
New Delhi, Apr 20 (KNN) The Union Cabinet, chaired by Narendra Modi, has approved the creation of a domestic insurance mechanism, Bharat Maritime Insurance Pool (BMI Pool), backed by a sovereign guarantee of Rs 12,980 crore to ensure uninterrupted maritime insurance coverage.
The move aims to provide affordable and continuous insurance for vessels carrying cargo to and from Indian ports, particularly amid rising geopolitical tensions and disruptions in global shipping routes.
Ensuring continuity amid global risks
The government noted that increasing global volatility has raised risks for maritime trade, leading to higher insurance premiums and uncertainty in coverage availability.
Indian shipping has remained heavily dependent on international insurers, particularly the International Group of Protection and Indemnity Clubs (IGP&I), for protection and indemnity (P&I) cover.
Such covers include third-party liabilities such as oil pollution, wreck removal, cargo damage, crew injury, and collision liabilities.
The BMI Pool is expected to reduce this dependence and ensure continuity of coverage, especially in scenarios where international insurers may withdraw due to sanctions or geopolitical developments.
Comprehensive risk coverage
The proposed pool will cover a wide range of maritime risks, including hull and machinery, cargo, protection and indemnity (P&I) and war risk. Policies will be issued by participating insurers using a combined underwriting capacity estimated at around Rs 950 crore.
The initiative is also aimed at building domestic expertise in marine underwriting, claims management, and legal frameworks tailored to Indian shipping conditions.
A governing body will be constituted to oversee the pool's operations and ensure efficient functioning.
Officials said the sovereign guarantee is intended to strengthen self-reliance, enhance resilience against sanctions, and provide greater sovereign control over critical maritime insurance infrastructure.
(KNN Bureau)
The move aims to provide affordable and continuous insurance for vessels carrying cargo to and from Indian ports, particularly amid rising geopolitical tensions and disruptions in global shipping routes.
Ensuring continuity amid global risks
The government noted that increasing global volatility has raised risks for maritime trade, leading to higher insurance premiums and uncertainty in coverage availability.
Indian shipping has remained heavily dependent on international insurers, particularly the International Group of Protection and Indemnity Clubs (IGP&I), for protection and indemnity (P&I) cover.
Such covers include third-party liabilities such as oil pollution, wreck removal, cargo damage, crew injury, and collision liabilities.
The BMI Pool is expected to reduce this dependence and ensure continuity of coverage, especially in scenarios where international insurers may withdraw due to sanctions or geopolitical developments.
Comprehensive risk coverage
The proposed pool will cover a wide range of maritime risks, including hull and machinery, cargo, protection and indemnity (P&I) and war risk. Policies will be issued by participating insurers using a combined underwriting capacity estimated at around Rs 950 crore.
The initiative is also aimed at building domestic expertise in marine underwriting, claims management, and legal frameworks tailored to Indian shipping conditions.
A governing body will be constituted to oversee the pool's operations and ensure efficient functioning.
Officials said the sovereign guarantee is intended to strengthen self-reliance, enhance resilience against sanctions, and provide greater sovereign control over critical maritime insurance infrastructure.
(KNN Bureau)
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