India Plans to Establish National P&I Unit for Shipowners

India is planning to establish a national protection and indemnity (P&I) unit to provide high-risk insurance cover for the country’s shipowners. The Ministry of Ports, Shipping and Waterways is leading the initiative to develop the operating model for the new unit and is considering providing seed funding for its establishment. However, the relatively small number of Indian-flagged ships compared to global fleets poses a challenge, impacting the profitability of the P&I pool system.

Currently, Indian shipowners rely on the International Group of P&I Clubs for high-risk insurance coverage. However, the new national P&I unit aims to move away from international dependency and protect Indian shipping interests in the global landscape, especially from sanctions and complications related to insuring ships transporting crude oil from Russia.

In 2018, New India Assurance Co had offered P&I cover to local ships operating on domestic routes. The new national P&I unit seeks to expand beyond domestic coverage, with the goal of promoting self-reliance and reducing dependence on international companies in the maritime industry.

Source .