In a move aimed at strengthening India’s maritime resilience and reducing dependence on overseas insurers, the Union Cabinet, chaired by prime minister (PM) Narendra Modi, has approved the creation of a domestic insurance mechanism ‘Bharat Maritime Insurance Pool’ (BMI Pool) with a sovereign guarantee of ₹12,980 crore.
According to a
press release issued by the press information bureau (PIB) on 18 April 2026 ,the proposed pool seeks to ensure uninterrupted and affordable insurance coverage for Indian shipping, particularly in the face of rising geopolitical tensions and volatility in global trade routes. It will provide comprehensive risk coverage for vessels carrying cargo between Indian ports and international destinations, including transit through high-risk or conflict-prone maritime corridors.
According to the government, the BMI Pool will cover a wide range of maritime risks, including hull and machinery, cargo, protection and indemnity (P&I), as well as war-related risks. Policies under the pool will be issued by member insurers, drawing upon a combined underwriting capacity estimated at around ₹950 crore.
The initiative comes against the backdrop of increasing insurance costs and uncertainties in global maritime trade, driven by geopolitical instability and heightened risks to cargo and vessels. At present, Indian shipping entities rely heavily on international providers, particularly the International Group of Protection and Indemnity (IGP&I) Clubs, for third-party liability cover. These include risks such as oil pollution, wreck removal, cargo damage, crew injury, collision liabilities and repatriation obligations.
The government has highlighted that such reliance exposes Indian trade to potential disruptions, especially in scenarios involving sanctions or withdrawal of coverage by foreign insurers. The BMI Pool is expected to address this vulnerability by building domestic capacity and ensuring continuity of insurance support.
The will be applicable to Indian-flagged or controlled vessels, as well as ships carrying cargo to and from India. By localising maritime risk underwriting and claims management, the initiative aims to develop specialised expertise within the country, aligned with domestic regulatory requirements and shipping conditions.
A governing body will be set up to oversee the structure and functioning of the Pool. The sovereign guarantee underpinning the initiative is intended to enhance credibility, ensure financial stability and reinforce India’s strategic objective of self-reliance in critical sectors.
The Cabinet’s decision is seen as part of a broader effort to safeguard India’s trade interests amid an increasingly uncertain global environment, while strengthening institutional capacity in the maritime insurance segment.
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