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Cabinet Approves ₹12,980 Cr Bharat Maritime Insurance Pool to Safeguard India’s Trade Amid Global Turbulence
On April 18, 2026, the Union Cabinet finally cleared the establishment of Bharat Maritime Insurance Pool (BHIP/BMI Pool) with sovereign guarantee of ₹12,980 crore. The pool will provide unhindered and affordable marine coverage for Indian ships, ships owned and/or operated by or on behalf of Indians and vessels with cargo moving to and from India, even in high risk locations.
Business Today, reporting the news, notes the risks covered by this program are Hull and Machinery, Cargo, Protection and Indemnity (P&I) and War Risk. This scheme covers risks exposed by recent geopolitical tensions, such as in the Strait of Hormuz region, where, it has been reported, war risk premiums have increased significantly, and where, at times, there is a refusal by foreign shipping insurers to provide cover.
The pool, operated with public and private insurers (co-ordinated by GIC Re), has a relatively high initial capacity for underwriting (estimated to some ₹950 crore) and is designed to operate for at least 10 years (with an option of a further five years of operation).
This move reduces India’s over-reliance on foreign P&I clubs, mainly in London, to which India pays large premiums, with little influence. It increases India’s self-reliance in marine insurance, establishes underwriting and claim settlement skills in the country and prevents trade disruptions in times of crisis.
The pool, noted Business Today, is an ambitious initiative but its strength lies in the creation of a risk-sharing mechanism, strong reinsurance arrangements and global recognition. Economic Times BFSI deemed it a game-changer to assure security of shipping trade, adding that sanctions and geopolitical risk must be tackled. India Today stressed that the pool’s broad coverage and government support is crucial to protect Indian shipping in the Middle East.
The pool will inspire confidence in shipper groups, long-term cost savings and will look after India’s shipping sector interests. However, it should align with international standards, have proper management and good reinsurance support to win international acceptance, they say. The new pool is a step towards Atmanirbhar Bharat in the critical area of risk management.
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