Also,for the first time, Indian companies are insuring Indian ships independently for higher-value vessels. The coverage spans Hull & Machinery, Cargo against War perils in High-Risk Area and Protection & Indemnity.
New Delhi:Amidst prolonged West Asia conflict, the Bharat Maritime Insurance Pool(BMIP), set up since 12 May, has issued 3000 Cargo War, 92 Hull War-risk and 3 Protection & Indemnity insurance policies.
Since its operational launch, the BMIP, ensuring affordable, sovereign coverage for vessels and cargo, enhancing resilience against global risks, has provided uninterrupted War-risk insurance for Indian maritime stakeholders and the War-risk insurance premiums have fallen by about 35–40% since the peak of the West Asia conflict, said a government note on Sunday.
Also,for the first time, Indian companies are insuring Indian ships independently for higher-value vessels. The coverage spans Hull & Machinery, Cargo against War perils in High-Risk Area and Protection & Indemnity.
The pool is India’s first domestic maritime insurance pool of ₹13,906.50 crore (USD 1.5 billion). It assures sovereign backing of ₹12,980 crore (USD 1.4 billion).
BMIP, marks a major step in India’s maritime financial independence. Its role is to ensure credible operations, competitive pricing, and reliable claims handling for stakeholders. Medium-term focus remains on strengthening human capital, legal frameworks, and reinsurance partnerships. These efforts enhance resilience while keeping reliance on sovereign backing minimal.
In the long term, the pool,managed by GIC Re and supported by clutch of general insurers,will emerge as a regional anchor for maritime insurance in the Indian Ocean Region.
India gains recognition as a provider of financial services and a shaper of maritime risk norms.
Conflicts in the Red Sea and tensions near the Strait of Hormuz have disrupted vital routes. With a major share of crude oil imported by sea, India’s energy security depends on uninterrupted coverage. During this period, foreign insurers increased insurance premiums or stopped providing cover. This increased costs sharply for ship owners, raising the need for a domestic safety net.
Earlier, India did not have institutional depth in marine underwriting and claims management. BMIP builds this expertise indigenously, laying the foundation for a world‑class domestic insurance sector and reducing reliance on foreign hubs like London or Switzerland.
As shipbuilding expands and ports handle larger cargo volumes, the pool will grow alongside India’s maritime ambitions. Its capacity and coverage stand as a lasting pillar of India’s maritime infrastructure.
India operates 12 Major and 217 Non‑Major Ports, handling diverse cargo types nationwide. India’s major and non-major ports handled 1,668 million metric tonnes of cargo during 2025–26, a figure rising with economic growth and trade expansion.The Indian-flag fleet has grown to 1,609 ships and 14.33 million GT as of mid-2026, a roughly 36% increase in tonnage since 2015. 95% of India’s trade value and 70% of trade volume flows through maritime routes.
India’s maritime trade has expanded, but key marine insurance services remain largely dependent on foreign providers. This leads to an annual outflow of USD 45–60 million in Protection and Indemnity (P&I) premiums, besides higher marine insurance payments abroad.