The Indian government has approved the creation of the Bharat Maritime Insurance Pool (BMI Pool) with a sovereign guarantee of ₹12,980 crore, marking a major step to strengthen the country’s maritime trade security and reduce dependence on foreign insurers. The initiative is designed to ensure uninterrupted insurance coverage for Indian-linked vessels amid rising geopolitical and shipping risks.
The BMI Pool will provide coverage for key maritime risks including hull and machinery damage, cargo losses, protection and indemnity liabilities, and war-related risks. It will apply to Indian-flagged vessels, Indian-controlled ships, and vessels carrying cargo to or from Indian ports.
The move comes as conflicts and sanctions-related uncertainties have increased insurance costs and made global reinsurers more cautious in offering marine coverage, particularly in sensitive trade corridors such as the Strait of Hormuz and other high-risk regions.
Industry experts said the sovereign-backed pool could lower insurance premiums for Indian shipping companies, improve domestic underwriting expertise, and provide greater resilience to India’s trade network. The mechanism is also expected to enhance strategic autonomy by reducing reliance on international protection and indemnity clubs that currently dominate maritime insurance markets.
With India heavily dependent on seaborne imports of crude oil, LNG, coal, fertilizers, and containerized goods, uninterrupted insurance access is critical for supply chain continuity. Analysts view the BMI Pool as a strategic safeguard that can support commerce even during periods of global volatility.
