Bharat Maritime Insurance Pool Launch and Structure

India launched the Bharat Maritime Insurance Pool (BMIP) on 12 May 2026 as a sovereign solution to address the country's dependence on foreign marine insurance providers. The pool was approved on 18 April 2026 and has a total coverage capacity of ₹13,906.50 crore (USD 1.5 billion), backed by a sovereign guarantee of ₹12,980 crore (USD 1.4 billion) from the Indian government. This initiative aims to reduce the annual outflow of USD 45-60 million in Protection and Indemnity (P&I) premiums to foreign insurers and provide affordable, uninterrupted coverage during global disruptions.

Coverage and Eligibility

The BMIP offers comprehensive marine insurance coverage across four risk categories: Hull & Machinery, Cargo against War perils in High-Risk Areas, Protection & Indemnity (P&I), and War risks. The pool covers vessels that are Indian-flagged or owned, managed, or controlled by Indian entities, as well as cargo vessels destined to or starting from India. The program has a duration of 10 years, extendable up to 15 years, with domestic insurers issuing policies and collectively reinsuring risks based on their committed capacity.

Claims Management and Governance

Claims up to USD 100 million are settled from accumulated reserves and reinsurance recoveries, while larger claims activate the sovereign guarantee only after complete exhaustion of pool reserves. The General Insurance Corporation of India (GIC Re) serves as the Pool Administrator, managing daily operations and submitting performance reports. A Governing Body oversees pool operations, and an Underwriting Committee ensures sound risk evaluation and long-term financial sustainability.

Operational Impact and Initial Results

Since its launch, BMIP has achieved significant milestones, including issuing India's first domestic P&I policy to Shipping Corporation of India Limited on 30 July 2026 through New India Assurance Company Limited. The pool has issued 3,000 Cargo War policies, 92 Hull War-risk policies, and 3 P&I insurance policies as of 7 September 2026. War-risk insurance premiums have fallen by 35-40% since the peak of the West Asia conflict, providing immediate cost benefits to Indian maritime stakeholders.

Broader Economic Context

India's maritime sector handles 95% of the country's trade value and 70% of trade volume, with major and non-major ports handling 1,668 million metric tonnes of cargo during 2025-26. The Indian-flag fleet has grown to 1,609 ships and 14.33 million GT as of mid-2026, representing a 36% increase in tonnage since 2015. The BMIP addresses vulnerabilities exposed by geopolitical volatility in regions like the Red Sea and Strait of Hormuz, where foreign insurers previously increased premiums or withdrew coverage during conflicts.