New Delhi: The Department of Financial Services (DFS) on Thursday launched India’s first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP), a move aimed at strengthening the country’s maritime risk management framework, reducing dependence on foreign insurers and boosting self-reliance in specialised marine insurance.
As part of the launch, the DFS Secretary handed over the first P&I insurance policy issued under BMIP by The New India Assurance Company to the Shipping Corporation of India Ltd.
The policy provides financial protection against third-party liabilities, including crew and cargo claims, pollution liability and wreck removal, while also offering access to a 24×7 global port correspondent network.
The insurance cover provides an indemnity limit of up to $1.5 billion through the combined underwriting capacity of the insurance pool.
The government said the launch marks a significant milestone for India’s maritime sector by expanding the scope of the Bharat Maritime Insurance Pool beyond war-risk coverage to include Protection and Indemnity insurance, thereby strengthening the country’s maritime insurance ecosystem.
The BMIP, operational since May 12, 2026, under a sovereign guarantee, was established to ensure uninterrupted availability of maritime war-risk insurance for Indian shipping stakeholders during periods of geopolitical uncertainty.
According to the Department of Financial Services, the pool has witnessed strong market acceptance since its launch and has successfully achieved its objective of providing uninterrupted war-risk insurance capacity.
The introduction of BMIP has also helped reduce war-risk insurance premiums by around 35-40 per cent compared with the peak levels witnessed during the West Asia conflict.
As of July 29, 2026, the pool had issued 1,608 policies covering cargo war-risk and hull war-risk insurance.
The government said the addition of P&I coverage would further enhance India’s maritime risk management capabilities by broadening domestic underwriting capacity and improving the resilience of the country’s marine insurance sector.
Officials said the initiative aligns with the government’s broader vision of ‘Atmanirbhar Bharat’ by building indigenous capabilities in specialised insurance products, reducing reliance on overseas insurance markets and ensuring that a greater share of value generated from India’s maritime trade remains within the domestic economy.
(IANS)
