The Bharat Maritime Insurance Pool (BMIP), established on May 12, has issued more than 3,000 Cargo War, 92 Hull War-risk and three Protection & Indemnity (P&I) insurance policies since its operational launch, according to a government note.
The ₹13,906.50 crore (USD 1.5 billion) domestic maritime insurance pool, managed by GIC Re and supported by general insurers, provides sovereign-backed coverage of ₹12,980 crore (USD 1.4 billion) to Indian maritime stakeholders.
The government said BMIP has ensured uninterrupted war-risk insurance coverage at affordable rates amid prolonged conflict in West Asia. War-risk insurance premiums have declined by around 35–40% from their peak during the conflict.
For the first time, Indian companies are also independently insuring higher-value Indian vessels. Coverage includes Hull & Machinery, cargo against war perils in high-risk areas, and P&I risks.
The pool was established as conflicts in the Red Sea and tensions around the Strait of Hormuz disrupted major maritime trade routes. Foreign insurers had either raised premiums significantly or withdrawn coverage for certain risks, increasing costs for shipowners and highlighting the need for a domestic insurance mechanism.
BMIP is also aimed at developing indigenous expertise in marine underwriting and claims management, reducing dependence on overseas insurance centres such as London and Switzerland. Its medium-term priorities include strengthening human capital, legal frameworks and reinsurance partnerships, while minimising reliance on sovereign backing.
In the longer term, the government expects BMIP to emerge as a regional maritime insurance hub for the Indian Ocean Region and support India’s growing role in maritime financial services and risk management.
India currently has 12 major and 217 non-major ports, which handled 1,668 million tonnes of cargo during 2025–26. The Indian-flag fleet stood at 1,609 vessels with 14.33 million gross tonnage as of mid-2026, representing about 36% growth in tonnage since 2015.
Around 95% of India’s trade by value and 70% by volume moves through maritime routes. However, marine insurance services remain significantly dependent on foreign providers, with an estimated USD 45–60 million flowing overseas annually in P&I premiums, in addition to other marine insurance payments.