Govt launches $1.5 billion Bharat Maritime Insurance Pool with sovereign guarantee to secure shipping risks
The Department of Financial Services (DFS) under the Ministry of Finance on Tuesday launched the ‘Bharat Maritime Insurance Pool’ (BMIP) with a total capacity of USD 1.5 billion and a sovereign guarantee of USD 1.4 billion (₹12,980 crore) to ensure uninterrupted maritime insurance coverage amid global geopolitical tensions, including developments in the Middle East.
The initiative was unveiled at a formal event chaired by DFS Secretary M. Nagaraju, who also handed over the first Marine Hull & Machinery War Policy issued under the pool.
The policy was issued by The New India Assurance Company Limited to M/s Hoger Offshore and Marine Private Limited, marking the operational rollout of the insurance mechanism.
According to the ministry, the BMIP will cover a wide range of maritime risks including hull and machinery, cargo, protection and indemnity (P&I), and war risks for Indian-flagged or India-linked vessels.
The pool has been designed to reduce dependence on foreign reinsurers and strengthen India’s sovereign capacity in managing maritime insurance, particularly in high-risk or sanction-sensitive routes where global insurers may withdraw coverage.
The ministry said a governing body and underwriting committee have been constituted to oversee operations and ensure prudent risk management. The General Insurance Corporation of India (GIC Re) will act as the pool administrator.
Under the structure, claims up to USD 100 million will be met through pooled capacity, while higher claims will be backed by the sovereign guarantee after exhausting reserves and reinsurance arrangements.
According to the government, the initiative will strengthen India’s maritime trade security, ensure continuity of shipping operations, and enhance financial sovereignty in global trade logistics.
