Cabinet clears ₹12,980 crore Bharat Maritime Insurance Pool to reduce external dependency
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday approved the creation of the Bharat Maritime Insurance Pool (BMI Pool) with a sovereign guarantee of ₹12,980 crore, aimed at ensuring uninterrupted and affordable maritime insurance coverage for Indian trade. The move comes amid rising global volatility and geopolitical tensions that have increased risks for vessels and cargo, pushing up insurance costs and creating uncertainty around coverage.
The domestic pool will provide insurance for ships carrying cargo to and from Indian ports, including those passing through high-risk maritime corridors, thereby reducing dependence on international insurers.
The BMI Pool will cover key maritime risks such as Hull and Machinery, Cargo, Protection and Indemnity (P&I), and war risk. It will serve Indian-flagged vessels as well as those operating in connection with Indian trade, with policies issued by participating insurers using a combined underwriting capacity of around ₹950 crore.
The initiative is expected to strengthen India’s self-reliance in marine insurance, build domestic expertise in underwriting and claims management, and ensure continuity of coverage in case of global disruptions or sanctions.
A governing body will oversee its operations, with the sovereign guarantee aimed at enhancing resilience and maintaining greater national control over critical trade infrastructure.
