Bharat Maritime Insurance Pool: India's Sovereign Cover for Ships and Cargo
India's first domestic maritime insurance pool, BMIP, offers sovereign-backed marine cover of ₹13,906.50 crore to cut dependence on foreign insurers.
India has launched its first domestic maritime insurance pool, the Bharat Maritime Insurance Pool (BMIP), as a sovereign-backed answer to a long-standing strategic gap. Approved on 18 April 2026 and formally launched on 12 May 2026, the pool carries an underwriting capacity of ₹13,906.50 crore (USD 1.5 billion), supported by a sovereign guarantee of ₹12,980 crore (USD 1.4 billion).
Why a domestic pool matters
Most of India's trade moves by sea — about 95% of trade value and 70% of trade volume. Marine insurance is a legal and commercial necessity for that trade: hull and machinery policies protect vessels, cargo insurance safeguards goods, and Protection and Indemnity (P&I) covers liabilities such as pollution or crew injury. War risk insurance shields against piracy and conflict.
Yet Indian shipowners have relied almost entirely on the thirteen international P&I clubs, most of them based in the West, which together insure about 90% of the world's large ships. This dependence has meant an annual outflow of USD 45–60 million in P&I premiums, besides higher marine insurance payments abroad, and exposure to sudden coverage withdrawal or politically influenced decisions.
Geopolitical volatility has sharpened the concern. Conflicts in the Red Sea and tensions near the Strait of Hormuz disrupted vital routes, and foreign insurers either raised premiums sharply or stopped providing cover. With a large share of crude oil imported by sea, uninterrupted coverage is central to energy security.
Structure and coverage
The pool covers Hull & Machinery, Cargo, Protection & Indemnity, and War risks. It is open to vessels that are Indian flagged or owned, managed or controlled by Indian entities, as well as cargo vessels destined to or starting from India. It has a duration of ten years, extendable up to fifteen.
Policies are issued by domestic insurers that are members of the pool, using their combined underwriting capacity. The risks are then reinsured collectively by all members in proportion to the capacity each has committed. The General Insurance Corporation of India serves as Pool Administrator, managing daily operations and submitting performance reports. A Governing Body oversees operations, while an Underwriting Committee ensures consistent risk evaluation.
Claims up to USD 100 million are met from accumulated reserves and reinsurance recoveries. For larger claims, the sovereign guarantee activates only after pool reserves are fully exhausted.
A growing maritime base
India operates 12 major and 217 non-major ports, which handled 1,668 million metric tonnes of cargo in 2025–26. The coastline runs about 11,098 kilometres, the Exclusive Economic Zone spans 2.4 million square kilometres, and inland waterways exceed 14,500 kilometres. Maritime livelihoods support over 30 million people.
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. For the first time, Indian companies are insuring Indian ships independently for higher-value vessels.
Since its launch, the pool has issued War-risk and P&I policies for coastal vessels, reduced premiums, and strengthened India's maritime sovereignty, while building domestic expertise in marine underwriting and claims management.