BMIP: India's $1.5B Maritime Insurance Pool to reduce reliance on foreign insurers

During PM Modi's visit to the UAE on Friday, India and UAE signed an MoU to set up a Ship Repair Cluster at Vadinar (Gujarat).

The Department of Financial Services held an event chaired by the Secretary of DFS to launch the Bharat Maritime Insurance Pool, signaling government-led commitment to domestic maritime insurance capacity.

The New India Assurance Company issued the first Marine Hull & Machinery War Policy under BMIP to Hoger Offshore and Marine Pvt Ltd, formally operationalising the pool.

The government announced the Bharat Maritime Insurance Pool (BMIP), a $1.5 billion insurance mechanism backed by a sovereign guarantee of $1.4 billion. BMIP will cover marine hull and machinery, cargo, protection and indemnity (P&I), and war risks for Indian-flagged or India-linked vessels. The pool will be administered by General Insurance Corporation of India (GIC Re), with a governing body and underwriting committee to oversee operations. The first BMIP policy—Marine Hull & Machinery War Policy for Hoger Offshore and Marine Pvt Ltd—has been issued, operationalising the pool. Claims up to $100 million will be paid through pooled capacity; above that, the sovereign guarantee will support after reserves and reinsurance are exhausted.

Analysts note that BMIP is part of a broader push to build a domestic maritime ecosystem—encompassing ports, shipyards, shipping lines, logistics corridors, and financing—for strategic independence.

Industry experts welcomed BMIP as a timely move to deepen domestic underwriting and reduce dependence on foreign reinsurers, while cautioning that long-term success will depend on underwriting discipline, governance standards, pricing accuracy, and risk assessment.

A tripartite MoU was signed for a mega greenfield shipyard project in Tamil Nadu's Thoothukudi, reflecting broader maritime ecosystem initiatives.

Japan's Mitsui OSK Lines, the world’s second-largest ship owner by fleet size, expressed interest in shipbuilding investments and logistics infrastructure in India.

The pool will be administered by General Insurance Corporation of India (GIC Re), with a governing body and underwriting committee to oversee operations.

BMIP will cover marine hull and machinery, cargo, protection and indemnity (P&I), and war risks for Indian-flagged or India-linked vessels, providing a domestic safety net for maritime insurance, including war-risk coverage.