India has taken a major step towards maritime self-reliance with the launch of the Bharat Maritime Insurance Pool (BMIP), aiming to challenge the long-standing dominance of international Protection and Indemnity (P&I) Clubs that currently underwrite a large share of global shipping liabilities.
According to the Director General of Shipping, the BMIP is designed to provide Indian shipowners with a domestic alternative for maritime insurance and liability cover, reducing dependence on foreign insurers while strengthening the country’s maritime ecosystem. The initiative is expected to help develop indigenous expertise in marine underwriting, claims management, legal services and risk assessment.
The BMIP, launched with a capacity of USD 1.5 billion and backed by a sovereign guarantee of ₹12,980 crore, offers coverage across key maritime segments, including hull and machinery, cargo, war risks and Protection & Indemnity (P&I) insurance. The pool is intended to ensure uninterrupted insurance availability for Indian-flagged and Indian-controlled vessels, particularly during periods of geopolitical uncertainty and volatility in global insurance markets.
The DG Shipping highlighted that global P&I insurance has traditionally been dominated by a handful of international clubs, leaving shipping nations heavily reliant on foreign capacity. By establishing a domestic insurance mechanism, India aims to build competitive capabilities in maritime insurance while offering shipowners greater flexibility and resilience.
Industry stakeholders believe the BMIP could strengthen India’s position as a maritime nation, lower insurance-related vulnerabilities, and support the government’s broader vision of expanding the country’s shipping and port sectors. The pool is also expected to enhance India’s ability to service vessels operating in high-risk and conflict-prone waters while safeguarding trade continuity.
