The Bharat Maritime Insurance Pool (BMIP), launched in May 2026, represents a vital development in India's maritime insurance, offering consistent war-risk coverage to stakeholders in the shipping sector.
War-risk insurance premiums have decreased by approximately 35–40 percent from their peak during recent West Asia conflicts. By September 7, 2026, BMIP had issued over 3,000 Cargo War policies, 92 Hull War-risk policies, and three Protection & Indemnity insurance policies, according to a government factsheet.
Heightened tensions near the Red Sea and the Strait of Hormuz disrupted crucial shipping routes. Since much of India's crude oil imports rely on these waterways, sustaining insurance coverage is critical for energy security. As foreign insurers raised premiums or withdrew coverage, the cost burden on shipowners grew, highlighting the need for a domestic insurance solution.
Supported by a government guarantee of Rs 12,980 crore (around $1.4 billion), the BMIP has a financial backing that can cover risks up to Rs 13,906.5 crore ($1.5 billion). This sovereign guarantee ensures the Pool can absorb catastrophic losses.
Previously, India lacked robust marine underwriting and claims infrastructure domestically. BMIP is developing this expertise within India, reducing dependency on foreign maritime insurance hubs like London and Switzerland.
The Pool provides extensive coverage across all maritime risk categories, ensuring vessels and cargo in Indian trade remain insured domestically regardless of route or risk type.
On July 30, 2026, the Shipping Corporation of India Limited received the first Protection & Indemnity insurance policy issued under BMIP by New India Assurance Company Limited, which covers third-party liabilities.
Sterlite Copper Limited was issued a Marine Cargo War Policy protecting its imports of cable wires into India, demonstrating BMIP's role in safeguarding industrial supply chains.
Balrampur Chini Mills Limited, a sugar manufacturer, also obtained coverage, showing the Pool's support extends beyond shipowners to farms, factories, and commodity traders reliant on maritime transport.
The BMIP is managed by General Insurance Corporation of India (GIC Re), with governance and underwriting committees established and operational systems for claims and compliance fully in place.
India's prior reliance on 13 international Protection & Indemnity clubs, mainly Western-based, posed risks due to possible abrupt withdrawal or politicised actions. BMIP offers a crucial domestic alternative to mitigate these vulnerabilities.
