Bharat Maritime Insurance Pool Reaches 3,000 Cargo War Policies

India’s Bharat Maritime Insurance Pool (BMIP) issued 3,000 cargo war insurance policies within four months of its launch, expanding domestic cover for trade exposed to conflict-related risks.

As of 7 September 2026, the pool had also issued 92 hull war-risk policies and three protection and indemnity (P&I) policies, according to a government factsheet released on 27 September. The figures indicate early uptake of the sovereign-backed facility among shipping and cargo interests.

War-Risk Premiums Ease

The Ministry of Finance has reported a reduction of approximately 35–40 per cent in war-risk premium rates compared with levels prevailing at the height of the West Asia conflict.

The pool provides a domestic insurance option intended to maintain access to cover during periods of disruption in international insurance markets. By 29 July, it had issued 1,608 policies covering cargo and hull war risks, according to an earlier ministry update.

Sovereign Backing Supports Maritime Cover

Launched on 12 May 2026, BMIP has an insurance capacity of US$1.5 billion, supported by a US$1.4 billion sovereign guarantee, equivalent to ₹12,980 crore.

Its scope includes hull and machinery, cargo, P&I and war risks. Eligible business includes Indian-flagged or Indian-controlled vessels, as well as vessels carrying cargo to or from India.

The government introduced the facility amid Middle East tensions to help preserve the availability of maritime insurance for Indian shipping and trade. At its launch, New India Assurance issued the first marine hull and machinery war policy under the pool to Hoger Offshore and Marine Private Limited.

P&I Product Extends Liability Protection

The pool’s offering expanded on 30 July with the launch of a sovereign-backed P&I insurance product developed by New India Assurance. Shipping Corporation of India received the first policy under this product.

The cover addresses third-party liabilities, including crew and cargo liabilities, pollution and wreck removal. It also provides access to a round-the-clock port correspondent network, with an indemnity limit of up to US$1.5 billion through the pool’s combined capacity.

The initiative forms part of the government’s effort to strengthen domestic marine underwriting capabilities and reduce dependence on overseas insurance markets.