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). The first policy was issued to the Shipping Corporation of India.
Key Details
P&I insurance protects shipowners against third-party liabilities such as crew and cargo claims, pollution damage and wreck-removal costs.
The product, designed by New India Assurance, offers cover of up to USD 1.5 billion.
The wider aim is to build domestic marine-insurance capacity and reduce dependence on overseas insurers for large shipping risks.
Exam Connect
BMIP → sovereign-backed maritime insurance pool
Department of Financial Services → Ministry of Finance
New India Assurance → provider of the P&I product