India has launched a new government-backed P&I insurance scheme called the BMIP, with its first policies issued in July 2026. The initial coverage was provided to the Shipping Corporation of India, which included a tugboat and two barges. This development signifies the transition of the BMIP from concept to implementation, addressing a critical need for Indian shipowners.
P&I insurance is essential as it covers liabilities shipowners face towards third parties, such as crew injury claims, cargo damage, pollution incidents, and wreck removal costs. Historically, Indian shipowners relied on international P&I clubs for such coverage, which posed risks, especially during geopolitical tensions that could disrupt access to global insurance markets.
The BMIP was established to mitigate these risks, with the Union Cabinet approving it in April 2026 and providing a sovereign guarantee of ₹12,980 crore. The scheme offers a total coverage capacity of $1.5 billion, encompassing hull and machinery, cargo, P&I, and war risk insurance for Indian vessels. In its initial months, the focus has been primarily on war risk coverage, with significant reductions in premiums observed since recent conflicts.
Despite these advancements, the acceptance of BMIP’s P&I policies by global ports and authorities remains a challenge. Industry experts anticipate that full P&I coverage for ocean-going vessels will be achieved by 2027, marking a significant milestone for Indian maritime insurance.
