India is expediting the establishment of its own Protection and Indemnity (P&I) insurance entity, a concept that has been in discussion for years. Recent crises in West Asia have dramatically increased marine insurance costs for Indian shipowners and exporters, prompting renewed momentum for the initiative.
Rajesh Kumar Sinha, Special Secretary at the Ministry of Ports, Shipping and Waterways, announced that talks are ongoing with the Department of Financial Services, and a detailed study on the proposed entity is nearing completion. This announcement came during a press conference of an inter-ministerial group addressing the logistics and trade impacts of the West Asia crisis.
The planned entity, informally referred to as ‘India Club,’ aims to provide third-party maritime liability coverage for Indian-flagged vessels. By establishing a domestic solution, India seeks to mitigate its reliance on major international P&I clubs that have recently raised premiums and war-risk surcharges significantly, exerting financial pressure on local shipping operations.
Industry experts argue that a homegrown P&I entity would enhance India’s control over maritime insurance pricing, reduce foreign exchange outflows, and provide better protection for Indian seafarers and shipowners amid geopolitical tensions. A policy framework could soon follow, contingent on the study’s completion.
Share it now
