Date: 2026-05-12Category: Press ReleaseState: Union GovernmentCountry: India
DFS Launches 'Bharat Maritime Insurance Pool’ of USD 1.5 billion, with a sovereign guarantee of USD 1.4 billion/₹12,980 crores to facilitate continuous maritime insurance coverages, in the background of current Middle East tensions
**Executive Summary**
On May 12, 2026, the Department of Financial Services launched the USD 1.5 billion 'Bharat Maritime Insurance Pool' (BMIP) to ensure continuous maritime insurance coverage amid geopolitical tensions in the Middle East. Supported by a USD 1.4 billion sovereign guarantee, the pool provides a domestic alternative for Indian-linked vessels to mitigate risks associated with the withdrawal of foreign reinsurance support. This initiative aims to strengthen India’s maritime risk framework and protect critical trade flows from sanctions and war perils.
**Key Points / Main Content**
**Financial Structure and Scope**
* **Total Capacity:** The pool is established with a total capacity of USD 1.5 billion.
* **Sovereign Guarantee:** The Government of India provides a sovereign guarantee of USD 1.4 billion (₹12,980 crores) to act as a contingent backstop.
* **Risk Coverage:** Coverage includes Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War risks.
* **Eligibility:** Applicable to Indian flagged or controlled vessels, as well as vessels destined for or departing from India.
**Governance and Administration**
* **Governing Body:** A newly constituted body oversees pool operations and approves the invocation of the sovereign guarantee.
* **Underwriting Committee (UC):** Responsible for ensuring technically sound and consistent underwriting of risks ceded to the pool.
* **Pool Administrator:** GIC Re serves as the administrator, handling returns, reinsurance arrangements, and performance statements.
**Operational Mechanics**
* **Policy Issuance:** Domestic insurers who are members of the pool issue policies using the pool's combined capacity.
* **Reinsurance:** Risks are reinsured by all pool members in proportion to their respective capacity commitments.
* **Claims Processing:** Claims up to USD 100 million are serviced using the pool's internal capacity. The sovereign guarantee is invoked as a last resort for claims exceeding USD 100 million after reserves and member contributions are exhausted.
**Strategic Objectives**
* **Trade Continuity:** Reduces dependence on international groups and foreign reinsurers who may withdraw support due to sanctions or high-risk environments.
* **Sovereign Control:** Enhances India's control over its maritime trade and financial sovereignty.
* **Liability Protection:** Provides coverage for third-party liabilities including oil pollution, wreck removal, and crew injury.
**Impact Analysis**
**Indian Ship Owners and Operators (e.g., Hoger Offshore and Marine Private Limited)**
**Impact**
They gain access to stable, domestic insurance coverage for Hull and Machinery War risks, ensuring they can navigate high-risk zones without fear of losing coverage due to international sanctions.
**Action Required**
Engage with domestic pool-member insurers to secure coverage under the BMIP framework.
**Indian Trading and Import/Export Entities (e.g., Vedanta Sterlite Copper Ltd., Balrampur Chini Mills Limited)**
**Impact**
These entities receive financial protection for cargo (such as cable wires or sugar) against war perils, ensuring the continuity of critical trade flows and imports.
**Action Required**
Utilize Marine Cargo War Policies issued under the BMIP to protect shipments against geopolitical disruptions.
**Domestic Insurance Companies (e.g., New India Assurance Co. Ltd.)**
**Impact**
Insurers act as pool members, issuing policies backed by a massive collective underwriting capacity and a sovereign guarantee.
**Action Required**
Issue policies under the BMIP and commit proportional capacity for reinsurance within the pool.
**GIC Re (General Insurance Corporation of India)**
**Impact**
GIC Re assumes the central role of Pool Administrator, managing the financial and reporting integrity of the collective.
**Action Required**
Submit regular returns, manage reinsurance arrangements, and provide statements on the pool’s performance to the Governing Body.
Key Entities Referenced
Bharat Maritime Insurance Pool (BMIP): A USD 1.5 billion domestic insurance pool backed by a sovereign guarantee to provide continuous maritime insurance coverage for risks such as Hull, Machinery, and War.
General Insurance Corporation of India (GIC Re): The designated pool administrator responsible for managing re-insurance arrangements and reporting on the performance of the insurance pool.
Department of Financial Services (DFS): The primary department under the Ministry of Finance responsible for the launch and chairing of the maritime insurance initiative.
Governing Body: The oversight authority constituted to supervise the functioning of the BMIP and approve the invocation of the sovereign guarantee.
Underwriting Committee (UC): A committee formed to ensure prudent and technically sound underwriting of maritime risks ceded to the pool.
Ministry of Finance
DFS Launches 'Bharat Maritime Insurance Pool’
of USD 1.5 billion, with a sovereign guarantee of
USD 1.4 billion/₹12,980 crores to facilitate
continuous maritime insurance coverages, in the
background of current Middle East tensions
Secretary, DFS, Shri M. Nagaraju hands over the first Marine
Hull & Machinery War Policy document to M/s. Hoger
Offshore and Marine Private Limited issued by the New India
Assurance Co. Ltd. under BMIP
Posted On: 12 MAY 2026 8:07PM by PIB Delhi
The Department of Financial Services, Ministry of Finance held an event chaired by Secretary, DFS to
launch the domestic insurance pool, namely 'Bharat Maritime Insurance Pool' (BMIP) of USD 1.5 billion
today, with a sovereign guarantee of USD 1.4 billion/₹12,980 crores to facilitate continuous maritime
insurance coverages. The pool covers all maritime risks such as Hull and Machinery, Cargo, P&I and War
risk for Indian flagged or controlled vessels or vessels destined to or starting from India, in the context of
the current Middle East tensions.The event was attended by senior officers from Department of Financial Services including Special
Secretary Shri Sanjay Lohiya, Additional Secretary Shri Debasish Prusty, and CMD, General Insurance
Corporation of India Shri Hitesh Joshi, CMD, New India Assurance Company Limited, Smt. Girija
Subramanian, Secretary General, General Insurance Council Smt. Kasturi Sengupta and Director, Ministry
of Ports, Shipping and Waterways, Shri Opesh Kumar Sharma.Secretary, DFS, Shri M. Nagaraju handed over the first Marine Hull & Machinery War Policy document to
M/s. Hoger Offshore and Marine Private Limited issued by the New India Assurance Co. Ltd. under
BMIP, providing financial protection against War Perils while navigating through High Risk War Zones.
Also, a Marine Cargo War Policy was presented to M/s. Vedanta Sterlite copper Ltd., covering its import
of cable wires. Policy was also issued to Balrampur Chini Mills Limited.
Restrictions or withdrawal of insurance cover in high-risk areas or sanctioned environments can disrupt
shipping operations and critical trade flows. Due to sanctions, foreign re/insurers can withdraw support for
any insurance policy that covers cargo or vessel carrying cargo, from the sanctioned country. Another area
of concern is dependence of Indian vessels on International Group (IG) Protection and Indemnity (P&I)
Club for P&I insurance. P&I insurance covers third-party liabilities like Oil pollution liability, Wreck
removal, Cargo damage, Crew injury and repatriation, Collision liabilities. The pool with sovereign
guarantee will be able to provide sufficient underwriting capacity to cover the risks adequately and enable
the country to increase sovereign control over maritime trade.
A Governing Body has been constituted to oversee the functioning of the pool, including approvals
regarding the invocation of the sovereign guarantee. In addition, an Underwriting Committee (UC)
responsible for ensuring prudent, consistent and technically sound underwriting of risks ceded to the pool
has been formed. GIC Re is the pool administrator, which will submit the returns, details of re-insurance
arrangement, and statements on performance of the pool.
Policies will be issued by domestic insurers that are Pool members, using the combined underwriting
capacity of the Pool. These risks would then be reinsured by all Pool members, in proportion to their
capacity commitment in the Pool.
For claims arising upto USD 100 million, the pool will service the claim using its own capacity and for
claims beyond USD 100 million, the sovereign guarantee will be invoked to service claims as a contingent
backstop of last resort, after complete exhaustion of the pool's accumulated reserves, membercontributions and reinsurance arrangements.
The pool will enable the country to strengthen sovereign control over maritime trade and ensure continuity
of trade even in the event of withdrawal of re/insurance coverage due to sanctions or geopolitical tensions.
This would strengthen India’s maritime risk protection framework and support secure global trade
operations in future, promoting India’s financial sovereignty.
*****
NB/AD
(Release ID: 2260413) Visitor Counter : 802
Read this release in: Tamil , Urdu , ही , Marathi , Gujarati