The Union Cabinet recently approved the establishment of the ‘Bharat Maritime Insurance Pool’ (BMI pool), backed by a sovereign guarantee of ₹12,980 crore. This initiative aims to provide continuous maritime insurance coverage and address the growing challenges posed by global volatility and geopolitical instability. The BMI pool will ensure that Indian vessels have access to affordable insurance, reducing reliance on foreign insurers and mitigating risks associated with maritime trade.
The pool will cover various maritime risks, including Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risk. It will apply to vessels transporting cargo between Indian ports and international origins, even through high-risk maritime corridors. Information and Broadcasting Minister Ashwini Vaishnaw emphasized that the BMI pool will cater to India-flagged and controlled vessels over a ten-year period, enhancing self-reliance in the maritime sector.
Additionally, the BMI pool seeks to develop local expertise in marine underwriting and claims management, tailored to Indian regulatory requirements. A governing body will oversee its formation and operations, ensuring the pool aligns with national interests. This initiative reflects the government’s commitment to strengthening maritime sovereignty and ensuring the continuity of trade amidst fluctuating global conditions.
