The Government of India, in collaboration with GIC Re and The New India Assurance Company, has established a $100 million ‘Bharat Marine Pool’ to provide insurance and reinsurance cover for ships operating in high-risk and war-affected regions.
The initiative, backed by a sovereign guarantee, is aimed at ensuring continuity of maritime trade amid escalating geopolitical tensions that have raised insurance costs and reduced coverage availability for vessels navigating conflict-prone routes.
The marine pool will offer war risk insurance to Indian-flagged vessels as well as foreign ships carrying Indian cargo, helping shipping lines mitigate financial exposure while transiting volatile zones such as the Red Sea and surrounding areas.
Industry stakeholders noted that obtaining war risk coverage has become increasingly challenging and expensive due to heightened security concerns. The Bharat Marine Pool is expected to address this gap by providing a reliable and cost-effective insurance mechanism supported by the government.
The sovereign backing enhances the pool’s credibility and financial strength, enabling it to handle large claims and support a wider range of shipping activities. It also reduces dependency on international insurers, many of whom have tightened underwriting norms for high-risk regions.
Officials said the move is part of a broader strategy to safeguard India’s trade flows and energy imports, ensuring that supply chains remain resilient despite global disruptions.
The launch of the Bharat Marine Pool is likely to bring relief to shipping companies, exporters, and importers, while reinforcing India’s commitment to securing its maritime interests in an increasingly uncertain global environment.
