The Bharat Maritime Insurance Pool has issued over 3,000 cargo war policies since its May launch, providing domestic war-risk cover amid regional conflicts. Government-backed support of Rs 12,980 crore strengthens the facility as India seeks to reduce dependence on foreign insurers
Published Date – 27 September 2026, 02:22 PM
New Delhi: The launch of the Bharat Maritime Insurance Pool (BMIP) in May 2026 marks a significant development in India’s maritime insurance sector, with the facility ensuring uninterrupted war-risk insurance coverage for Indian maritime stakeholders since its operational launch.
War-risk insurance premiums have fallen by about 35–40 per cent from their peak during the West Asia conflict. As of September 7, 2026, the pool had issued 3,000 Cargo War, 92 Hull War-risk and three Protection & Indemnity insurance policies, according to a government factsheet issued on Sunday.
Conflicts in the Red Sea and tensions near the Strait of Hormuz have disrupted vital shipping routes. With a major share of crude oil imported by sea, India’s energy security depends on uninterrupted maritime insurance coverage. During the period of heightened tensions, foreign insurers increased premiums or stopped providing cover, sharply raising costs for shipowners and creating the need for a domestic safety net.
The insurance facility has government-backed support of Rs 12,980 crore ($1.4 billion), providing financial strength to meet obligations even in the event of catastrophic losses. The pool can cover risks worth Rs 13,906.5 crore ($1.5 billion), backed by a sovereign guarantee, increasing its capacity to cover large maritime losses, the factsheet stated.
Earlier, India lacked institutional depth in marine underwriting and claims management. BMIP is intended to build this expertise domestically, laying the foundation for a stronger domestic insurance sector and reducing reliance on foreign insurance hubs such as London and Switzerland.
BMIP has been designed to provide coverage across a broad range of maritime risk categories. It is intended to ensure that vessels and cargo involved in Indian trade have access to domestic insurance protection, regardless of the route or nature of the risk.
On July 30, 2026, India’s first Protection & Indemnity insurance policy under BMIP was issued to Shipping Corporation of India Ltd. Issued by New India Assurance Company Ltd, the policy provides financial protection against third-party liabilities.
A Marine Cargo War Policy was also issued to Vedanta Sterlite Copper Ltd. It covers the company’s imports of cable wires into India, demonstrating the pool’s potential to serve large industrial importers and support the insurance needs of supply chains feeding Indian industry.
A policy was also issued to Balrampur Chini Mills Ltd, a sugar manufacturer. The facility is available not only to shipowners but also to businesses involved in moving goods by sea, including manufacturers and commodity traders.
The Governing Body and Underwriting Committee were constituted after the pool’s launch, while General Insurance Corporation of India (GIC Re) took charge as the Pool Manager and Administrator. Systems for underwriting, claims and regulatory compliance have also been put in place.
India had earlier depended heavily on foreign insurers across the maritime insurance value chain. Indian shipowners rely largely on 13 international Protection & Indemnity clubs, mostly based in the West. This dependence can expose them to sudden changes in coverage, underscoring the importance of developing a domestic alternative, the factsheet added.
