The Department of Financial Services under the Ministry of Finance on Thursday (July 30, 2026) launched India’s first sovereign-backed Protection and Indemnity insurance product under Bharat Maritime Insurance Pool (BMIP), designed by the New India Assurance Company.
On this occasion, Financial Services Secretary Sanjay Lohia handed over the first Protection & Indemnity (P&I) insurance policy document to Shipping Corporation of India Ltd.
The insurance provides financial protection against third-party liabilities, including Crew & Cargo liability, pollution liability, wreck removal, 24×7 port correspondent network with an indemnity limit up to $1.5 billion, through the combined capacity of the pool, the Finance Ministry said in a statement.
The event was attended by Director General of Shipping Shyam Jagannathan, senior officers from the Department of Financial Services including Additional Secretary Debasish Prusty, and CMD, General Insurance Corporation of India Hitesh Joshi, CMD, New India Assurance Company, Girija Subramanian, and CMD Shipping Corporation of India Binesh Kumar Tyagi.
Since the operationalisation of BMIP by DFS on May 12, 2026, backed by a sovereign guarantee, the pool has demonstrated substantial market acceptance and has successfully met its primary objective of providing uninterrupted war risk insurance capacity to Indian stakeholders, it said.
With the introduction of BMIP, the war risk premium rates have decreased by approximately 35-40%, compared with the levels observed at the height of the West Asia conflict.
As on July 20, 2026, a total of 1,608 policies covering Cargo War risks and Hull War risks have been issued under the Pool.
While the BMIP mechanism ensures the continuity of maritime war risk insurance coverage, fosters the development of domestic underwriting capacity, and enhances confidence among India’s shipping and trade stakeholders, extending the pool to include Protection & Indemnity (P&I) coverage would further strengthen India’s maritime risk management framework and improve the resilience of its maritime insurance ecosystem, it said.
This initiative is another step towards the country’s commitment to building resilient, domestic insurance capabilities and supports the broader national vision of Atmanirbhar Bharat by fostering self-reliance in specialized insurance solutions, reducing dependence on foreign markets, and ensuring that value generated from India’s maritime trade remains within the domestic economy, it said.
Published – July 30, 2026 10:13 pm IST
