DFS Launches Protection & Indemnity Insurance Product Under Bharat Maritime Insurance Pool

The Department of Financial Services, Ministry of Finance, has launched India’s first sovereign-backed Protection & Indemnity insurance product under the Bharat Maritime Insurance Pool, designed by New India Assurance Company Limited, marking a landmark milestone for India’s maritime insurance sector.

Who attended the launch event?

The event, held in New Delhi and chaired by the Secretary of DFS, was attended by Director General of Shipping Shyam Jagannathan, Additional Secretary Debasish Prusty, General Insurance Corporation of India CMD Hitesh Joshi, New India Assurance Company Limited CMD Girija Subramanian, Shipping Corporation of India CMD Captain Binesh Kumar Tyagi, General Insurance Council Secretary General Kasturi Sengupta, senior officials from ICCSA and INSA, and Joint Secretary at the Ministry of Ports, Shipping and Waterways, Venkatesapathy S.

What does the new P&I insurance product cover?

The Secretary, DFS, handed over the first P&I policy document to Shipping Corporation of India, issued by New India Assurance Company under BMIP. The policy provides financial protection against third-party liabilities including crew and cargo liability, pollution liability and wreck removal, backed by a 24×7 port correspondent network and a combined indemnity limit of up to USD 1.5 billion through the pool’s collective capacity.

How has BMIP performed since its launch?

Since DFS operationalised the sovereign guarantee-backed pool on May 12, 2026, BMIP has seen substantial market acceptance, successfully delivering uninterrupted war risk insurance capacity to Indian stakeholders. War risk premium rates have dropped approximately 35 to 40 percent compared to levels seen at the height of the West Asia conflict. As of July 29, 2026, a total of 1,608 policies covering cargo and hull war risks have been issued under the pool.

Why does extending BMIP to P&I coverage matter?

While the existing BMIP mechanism ensures continuity of maritime war risk insurance and strengthens domestic underwriting capacity, extending the pool to include P&I coverage is expected to further reinforce India’s maritime risk management framework and improve the resilience of its insurance ecosystem.

What does this mean for India’s maritime insurance ambitions?

The initiative supports the broader vision of Atmanirbhar Bharat by building self-reliant, domestic insurance capabilities, reducing dependence on foreign markets, and ensuring that value generated from India’s maritime trade remains within the domestic economy.