Why in News?
The Department of Financial Services launched India’s first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP) on July 30, 2026.
What is the Bharat Maritime Insurance Pool?
The BMIP is a domestic insurance pool designed to expand India’s marine underwriting capabilities. It was operationalized on May 12, 2026, and has already issued over 1,600 Cargo War Risk and Hull War Risk policies.
- The new P&I product covers third-party liabilities such as crew and cargo claims, pollution liability, and wreck removal costs.
- It offers an indemnity limit of up to USD 1.5 billion, with the first policy issued to the Shipping Corporation of India (SCI).
- The pool has reduced war-risk premium rates by about 35-40% compared to peak West Asia conflict levels, helping Indian shipping companies save costs.
Why is this significant?
This move aims to reduce India’s dependence on overseas insurers and retain insurance value within the domestic economy. By providing sovereign-backed coverage, it strengthens India’s maritime security and self-reliance.
Exam Connect
Bharat Maritime Insurance Pool → Launched by Department of Financial Services under Ministry of Finance
New India Assurance → Founded in 1919 by Sir Dorabji Tata, nationalized in 1973
Shipping Corporation of India → Established in 1961, conferred Navratna status in 2008