The Department of Financial Services (DFS), Ministry of Finance, launched India's first sovereign-backed Protection & Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP) on July 30, 2026. The product was designed by New India Assurance Company Limited and represents a significant milestone for India's maritime sector.
The newly launched P&I insurance provides comprehensive financial protection against third-party liabilities including crew and cargo liability, pollution liability, and wreck removal. It features a 24x7 port correspondent network and offers an indemnity limit of up to USD 1.5 billion through the combined capacity of the pool. The first P&I policy document was handed over to Shipping Corporation of India Limited by New India Assurance Company Limited under the BMIP framework.
Since its operationalization on May 12, 2026, backed by sovereign guarantee, the BMIP has demonstrated substantial market acceptance and successfully met its primary objective of providing uninterrupted war risk insurance capacity to Indian stakeholders. The introduction of BMIP has led to a significant reduction in war risk premium rates by approximately 35-40% compared to the levels observed at the height of the West Asia conflict. As of July 29, 2026, the pool has issued a total of 1,608 policies covering both Cargo War risks and Hull War risks.
The BMIP mechanism ensures continuity of maritime war risk insurance coverage, fosters development of domestic underwriting capacity, and enhances confidence among India's shipping and trade stakeholders. The extension to include P&I coverage further strengthens India's maritime risk management framework and improves the resilience of its maritime insurance ecosystem. This initiative supports India's commitment to building resilient domestic insurance capabilities and aligns with the broader national vision of Atmanirbhar Bharat by fostering self-reliance in specialized insurance solutions, reducing dependence on foreign markets, and ensuring that value generated from India's maritime trade remains within the domestic economy.