Date: 2026-04-18Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves proposal for creation of ‘Bharat Maritime Insurance Pool’ (BMI pool) with a sovereign guarantee of Rs 12,980 crore to facilitate continuous maritime insurance coverages
**Executive Summary**
On April 18, 2026, the Union Cabinet approved the creation of the ‘Bharat Maritime Insurance Pool’ (BMI pool) supported by a Rs 12,980 crore sovereign guarantee. This initiative aims to provide continuous, affordable maritime insurance for Indian-related trade, mitigating risks from global geopolitical volatility and reducing dependency on international insurance groups. The pool is designed to ensure trade continuity even during international sanctions or when transiting volatile maritime corridors.
**Key Points / Main Content**
**Financial Provisions and Objectives**
* **Sovereign Guarantee:** The pool is backed by a government guarantee of Rs 12,980 crore to strengthen self-reliance and sanctions resilience.
* **Underwriting Capacity:** The combined underwriting capacity of the pool is approximately Rs 950 crore.
* **Strategic Goals:** To reduce dependency on the International Group of Protection and Indemnity (IGP&I) Club and ensure sovereign control over maritime trade.
**Scope of Coverage**
* **Risk Types:** Covers all major maritime risks, including Hull and Machinery, Cargo, War risk, and Protection and Indemnity (P&I).
* **P&I Specifics:** Includes third-party liabilities such as oil pollution, wreck removal, cargo damage, collision liabilities, and crew injury/repatriation.
* **Eligibility:** Applicable to Indian flagged or controlled vessels, as well as vessels carrying cargo to or from Indian ports regardless of international origin.
**Operational and Regulatory Framework**
* **Policy Issuance:** Policies will be issued by member insurers using the pool's collective underwriting capacity.
* **Governing Body:** A newly constituted Governing Body will oversee the formation and day-to-day functioning of the pool.
* **Domestic Development:** Focuses on developing specialized Indian expertise in marine underwriting, legal services, and claims management tailored to local regulatory requirements.
**Impact Analysis**
**Indian Shipping and Trade Industry**
**Impact**
The industry gains access to stable and affordable insurance, protecting cargo and vessels from increased costs and coverage withdrawals caused by geopolitical tensions or sanctions.
**Action Required**
Shift insurance procurement to the BMI pool for vessels and cargo transiting to or from India to ensure continuous coverage.
**Domestic Insurance Companies**
**Impact**
Member insurers will benefit from a collaborative underwriting framework and the opportunity to develop specialized technical expertise within India.
**Action Required**
Participate as pool members to issue policies and collaborate with the Governing Body to manage liability insurance locally.
**Governing Body**
**Impact**
Responsible for the strategic oversight and operational success of the domestic insurance entity.
**Action Required**
Oversee the formation and functioning of the pool to ensure it meets the objectives of self-reliance and sovereign control.
Key Entities Referenced
Bharat Maritime Insurance Pool (BMI pool): A domestic insurance pool backed by a Rs 12,980 crore sovereign guarantee, established to provide continuous maritime insurance coverage and reduce dependency on international insurers.
International Group of Protection and Indemnity (IGP&I) Club: An international group of insurance providers on which Indian vessels currently have high dependency for third-party liability coverage.
Ministry of Finance: The primary central ministry responsible for the proposal and financial backing of the maritime insurance pool.
Ministry of Finance
Cabinet approves proposal for creation of
‘Bharat Maritime Insurance Pool’ (BMI pool) with
a sovereign guarantee of Rs 12,980 crore to
facilitate continuous maritime insurance
coverages
The Domestic Insurance Pool addresses global volatility,
geopolitical instability and reduces external Insurance
dependency of Indian vessels
The pool covers all maritime risks like Hull and Machinery,
Cargo, P&I and War risk, Covers vessels carrying cargo
from any international origin to Indian ports and vice-versa,
even when transiting volatile maritime corridors
Posted On: 18 APR 2026 3:12PM by PIB Delhi
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved the proposal
for creation of a domestic insurance pool, namely ‘Bharat Maritime Insurance Pool’ (BMI pool) with a
sovereign guarantee of Rs.12,980 crores to facilitate continuous maritime insurance coverages. The pool
ensures that Indian trade continues to have access to affordable insurance for vessels carrying cargo from
any international origin to Indian ports and vice-versa, even when transiting volatile maritime corridors.
With increased global volatility and geopolitical instability, maritime trade has been impacted with
increased risk of losses for cargo and vessels resulting in increased insurance costs and uncertainty in
continuous availability of insurance. Further, there is high dependence of Indian vessels on International
Group of Protection and Indemnity (IGP&I) Club for P&I insurance covering third-party liabilities like
Oil pollution liability, Wreck removal, Cargo damage, Crew injury and repatriation, Collision liabilities
and so on. Accordingly, there was a need for a domestic maritime risk covering pool to maintain
sovereignty and continuity of trade in face of withdrawal of coverage due to sanctions or due to
geopolitical tensions.
In the above backdrop, the Government has approved formation of ‘Bharat Maritime Insurance Pool’
(BMI pool) for Indian flagged or controlled vessels or vessels destined to or starting from India, backed by
a sovereign guarantee. The pool would cover all maritime risks like Hull and Machinery, Cargo, P&I and
War risk. The policies will be issued by insurers that are Pool members, using the combined underwriting
capacity of the Pool, which would be around Rs.950 crore. The Pool will help to manage liability
insurance locally, tailored to Indian Shipping conditions and regulatory requirements, develop specialized
Marine underwriting, claims management and legal expertise within India.Further, a Governing Body Constituted for this pool would oversee the formation and functioning of the
pool. The rationale for providing a sovereign guarantee to the proposed domestic insurance entity is rooted
in the objectives of strengthening self-reliance, sanctions resilience and ensuring greater sovereign control.
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