In a significant step towards reshaping the maritime sector, the government has given its green signal for the creation of Bharat Maritime Insurance Pool (BMI pool) with a sovereign guarantee of Rs 12,980 crore. This domestic insurance 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. The move is expected to significantly reduce dependence on foreign underwriters and ensure uninterrupted risk coverage for Indian shipping.

The proposed BMI Pool will provide comprehensive coverage across key segments - hull and machinery, cargo, protection and indemnity (P&I), and war risk - for Indian-flagged and Indian-controlled vessels, including those operating in conflict-prone international waters. This is an important step towards powering India’s shipping industry to become one of the top maritime nations by 2047.

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.