Executive Summary
The Department of Financial Services (DFS) launched India’s first sovereign-backed Protection & Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP) on July 30, 2026. This initiative aims to provide domestic, uninterrupted maritime insurance capacity, having already reduced war risk premium rates by 35–40% since the pool’s operationalization in May 2026. As of July 29, 2026, the pool has issued 1,608 policies covering cargo and hull war risks.
Key Points / Main Content
Product Launch and Design
India has introduced its first sovereign-backed P&I insurance product, designed by the New India Assurance Company Limited.
The product provides financial protection against third-party liabilities, including crew, cargo, pollution, and wreck removal.
It features an indemnity limit of up to USD 1.5 billion and includes a 24x7 port correspondent network.
Market Impact and Performance
Since the BMIP's operationalization on May 12, 2026, war risk premium rates have decreased by approximately 35–40% compared to previous conflict-driven peaks.
A total of 1,608 policies for Cargo and Hull War risks were issued under the pool by late July 2026.
The first P&I policy under this framework was officially handed over to the Shipping Corporation of India Limited.
Strategic Objectives
The initiative aims to reduce India's dependence on foreign insurance markets and ensure maritime trade value remains within the domestic economy.
It supports the "Atmanirbhar Bharat" vision by fostering self-reliance in specialized insurance solutions and domestic underwriting capacity.
The pool enhances the resilience of India's maritime risk management framework and provides stable coverage for trade stakeholders.
Impact Analysis
Shipping and Trade Stakeholders (e.g., Shipping Corporation of India)Impact
Stakeholders benefit from significantly lower premium rates and access to a reliable, domestic, sovereign-backed insurance mechanism for war risks and third-party liabilities.
Action Required
Indian shipping companies can now transition their P&I and war risk coverage to the domestic BMIP framework to utilize the USD 1.5 billion indemnity limit.
Domestic Insurance Providers (e.g., New India Assurance, GIC Re)Impact
These entities are empowered to develop and manage specialized domestic underwriting capabilities, reducing the outflow of capital to international markets.
Action Required
Providers must continue to design, issue, and manage policies under the BMIP while maintaining the 24x7 correspondent network for third-party liability claims.
Indian Maritime EconomyImpact
The sector gains improved financial resilience and self-reliance, aligning with national strategic goals of economic independence.
Action Required
The Ministry of Finance and related departments must oversee the continued expansion of the pool to ensure the sustainability of the domestic insurance ecosystem.
Key Entities Referenced
Bharat Maritime Insurance Pool (BMIP): India's first sovereign-backed insurance pool established to provide maritime war risk and Protection & Indemnity (P&I) coverage.
Protection & Indemnity (P&I) insurance product: A sovereign-backed insurance product launched under BMIP to provide financial protection against third-party maritime liabilities including crew, cargo, and pollution.
Department of Financial Services (DFS): The primary government department under the Ministry of Finance responsible for the operationalisation and launch of the BMIP and its insurance products.
New India Assurance Company Limited: The lead insurance company responsible for designing the sovereign-backed P&I product and issuing the first policy under the BMIP.
Atmanirbhar Bharat: The national vision for self-reliance which this initiative supports by building domestic insurance capabilities and reducing dependence on foreign markets.
Ministry of Finance
DFS Launches Protection & Indemnity Insurance
Product under Bharat Maritime Insurance Pool
(BMIP)
With the introduction of BMIP, War risk premium rates
decrease approximately by 35-40%, from the levels observed
at the height of West Asia conflict
A total of 1608 Policies covering Cargo and Hull War risks
issued under the Pool as on 29th July 2026
प्रव तथ: 30 JUL 2026 6:09PM by PIB Delhi
The Department of Financial Services, Ministry of Finance held an event chaired by Secretary, DFS today
in New Delhi to launch India’s first sovereign-backed Protection & Indemnity insurance product under
Bharat Maritime Insurance Pool (BMIP), designed by the New India Assurance Company Limited.
The event was attended by Director General of Shipping Shri Shyam Jagannathan, senior officers from
Department of Financial Services including Additional Secretary Shri Debasish Prusty, and CMD, General
Insurance Corporation of India Shri Hitesh Joshi, CMD, New India Assurance Company Limited, Smt.
Girija Subramanian, CMD Shipping Corporation of India Limited Capt. Binesh Kumar Tyagi, Secretary
General, General Insurance Council Smt. Kasturi Sengupta, senior officers from ICCSA and INSA and
Joint Secretary, Ministry of Ports, Shipping and Waterways, Shri Sh. Venkatesapathy S.
Speaking on the occasion, Secretary, DFS congratulated all stakeholders involved in the process of
formulation of the Protection & Indemnity (P&I) insurance product for achieving this landmark milestone
for India’s maritime sector. The Secretary, DFS handed over the first P&I policy document to Shipping
Corporation of India Limited issued by the New India Assurance Company Limited under BMIP,providing financial protection against third party liabilities including Crew & Cargo liability, pollution
liability, wreck removal, 24x7 port correspondent network with indemnity limit upto USD 1.5 billion,
through the combined capacity of the pool.
Since the operationalisation of BMIP by DFS on 12th May, 2026 backed by sovereign guarantee, the pool
has demonstrated substantial market acceptance and has successfully met its primary objective of
providing uninterrupted war risk insurance capacity to Indian stakeholders. With the introduction of BMIP,
the war risk premium rates have decreased approximately by 35-40%, if compared with the levels
observed at the height of the West Asia conflict. As on 29th July 2026, a total of 1608 policies covering
Cargo War risks and Hull War risks have been issued under the Pool.
While the BMIP mechanism ensures the continuity of maritime war risk insurance coverage, fosters the
development of domestic underwriting capacity, and enhances confidence among India's shipping and
trade stakeholders, extending the pool to include Protection & Indemnity (P&I) coverage would further
strengthen India's maritime risk management framework and improve the resilience of its maritime
insurance ecosystem.
This initiative is another step towards the country’s commitment to building resilient, domestic insurance
capabilities and supports the broader national vision of Atmanirbhar Bharat by fostering self-reliance in
specialized insurance solutions, reducing dependence on foreign markets, and ensuring that valuegenerated from India's maritime trade remains within the domestic economy.
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