The Bharat Maritime Insurance Pool (BMIP) is strengthening India’s domestic maritime insurance capacity and reducing dependence on foreign insurers amid growing geopolitical and trade-related risks along key shipping routes.
Launched in May 2026, the BMIP provides marine insurance coverage for Indian-flagged vessels, ships owned, managed or controlled by Indian entities, and cargo vessels destined for or originating from India. The pool has an underwriting capacity of ₹13,906.50 crore, or 1.5 billion US dollars, backed by a sovereign guarantee of ₹12,980 crore.
India depends heavily on maritime routes for its trade, with 95 per cent of the country’s trade value and 70 per cent of trade volume moving through the sea. The country has 12 major and 217 non-major ports, which handled 1,668 million metric tonnes of cargo during 2025-26.
The need for domestic maritime insurance has increased amid India’s dependence on foreign providers, particularly for Protection and Indemnity insurance. According to the PIB release, this dependence results in an annual outflow of around 45-60 million US dollars in P&I premiums.
The BMIP has been designed as a domestic solution to this gap. It provides coverage for Hull and Machinery, Cargo War risks, Protection and Indemnity, and War risks.
The pool was approved on April 18, 2026, and formally launched on May 12, 2026. It is India’s first domestic maritime insurance pool with sovereign backing and is aimed at providing insurance support for higher-value vessels and cargo involved in Indian trade.
Protection against geopolitical risks
Recent disruptions in key maritime corridors, including the Red Sea and areas around the Strait of Hormuz, have highlighted the importance of uninterrupted marine insurance coverage.
The BMIP provides War-risk coverage against losses arising from armed conflict, piracy, terrorism and hostile vessel seizure. It also provides Cargo War coverage for goods transported through high-risk maritime corridors.
The pool’s Protection and Indemnity coverage addresses liabilities including pollution, oil pollution clean-up, wreck removal, crew injury and cargo damage.
Under its structure, policies are issued by domestic insurers that are members of the pool. The risks are collectively reinsured by pool members according to the capacity committed by each member.
Claims of up to 100 million US dollars are met from accumulated reserves and reinsurance recoveries. For larger claims, the sovereign guarantee is activated after the pool’s reserves are fully exhausted. General Insurance Corporation of India serves as the pool administrator.
BMIP records strong operational start
Since its operational launch, the BMIP has provided uninterrupted War-risk insurance coverage to Indian maritime stakeholders. War-risk insurance premiums have fallen by around 35-40 per cent from their peak during the West Asia conflict.
As of September 7, 2026, the pool had issued 3,000 Cargo War policies, 92 Hull War-risk policies and three Protection and Indemnity policies.
India’s first P&I insurance policy under the BMIP was issued on July 30, 2026, to Shipping Corporation of India Limited by New India Assurance Company Limited.
The pool’s first Hull and Machinery War-risk policy was issued on May 12, 2026, to Hoger Offshore and Marine Private Limited for a vessel operating through conflict zones.
A Marine Cargo War policy has also been issued to Vedanta Sterlite Copper Limited for its imports of cable wires into India. Another policy issued to Balrampur Chini Mills demonstrated that the pool’s coverage can extend beyond shipping companies to businesses transporting goods through maritime routes.
The Governing Body and Underwriting Committee have been established, while GIC Re is functioning as the Pool Manager and Administrator. Systems for underwriting, claims management and regulatory compliance have also been put in place.
Strengthening maritime financial resilience
The Bharat Maritime Insurance Pool is intended to provide competitive pricing, reliable claims handling and greater domestic capacity in maritime insurance.
The medium-term focus includes strengthening human resources, legal frameworks and reinsurance partnerships, while keeping dependence on sovereign backing limited.
In the long term, the pool is envisaged as a potential regional anchor for maritime insurance in the Indian Ocean Region, supporting India’s growing shipping, shipbuilding and port infrastructure and strengthening the country’s role in maritime financial services.
