On July 30, 2026, the Department of Financial Services, part of the Ministry of Finance, unveiled India’s inaugural sovereign-backed Protection and Indemnity (P&I) insurance product through the Bharat Maritime Insurance Pool (BMIP), developed by the New India Assurance Company. Financial Services Secretary Sanjay Lohia presented the first P&I insurance policy to the Shipping Corporation of India Ltd., marking a significant milestone in maritime insurance.
This insurance product offers comprehensive financial protection against various third-party liabilities, including crew and cargo liabilities, pollution, and wreck removal. It features a 24/7 port correspondent network and an indemnity limit of up to $1.5 billion, as stated by the Finance Ministry. The launch event was attended by key figures in the maritime sector, including Director General of Shipping Shyam Jagannathan and senior officials from the Department of Financial Services.
Since BMIP’s operational launch on May 12, 2026, it has gained notable market acceptance, fulfilling its primary goal of providing continuous war risk insurance to Indian stakeholders. The introduction of BMIP has led to a reduction in war risk premium rates by approximately 35-40% compared to previous levels during the West Asia conflict. By July 20, 2026, the pool had issued 1,608 policies covering various war risks.
The BMIP not only ensures ongoing maritime war risk insurance but also boosts domestic underwriting capabilities, enhancing confidence among India’s shipping and trade stakeholders. The addition of P&I coverage is expected to strengthen the country’s maritime risk management framework, aligning with India’s commitment to fostering self-reliance in specialized insurance solutions and retaining the economic value generated from maritime trade within the domestic economy.
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