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Govt okays ₹12,980-crore maritime insurance pool
The Union Cabinet approved the creation of Bharat Maritime Insurance Pool (BMI), a sovereign guarantee-backed insurance facility worth ₹12,980 crore, to shield Indian shipping from rising war-risk premiums amid the West Asia conflict. The pool will cover war-risk insurance for India-linked vessels for 10 years (extendable by five) and aims to reduce dependence on global reinsurers by ensuring coverage for cargo moving between India and international ports.
Why It Matters
With most Indian trade conducted by sea and ongoing geopolitical tensions in West Asia, the BMI seeks to stabilise trade flows and lower insurance costs for exporters and logistics stakeholders by providing an alternative to high-cost private insurers.
Timeline
1 Event
Cabinet approves Bharat Maritime Insurance Pool (BMI) worth ₹12,980 crore with sovereign guarantee
April 18, 2026
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the creation of the Bharat Maritime Insurance Pool (BMI), a sovereign guarantee-backed facility worth ₹12,980 crore. The decision follows rising underwriting costs driven by the war in West Asia and aims to reduce Indian merchant shippers’ reliance on global risk-coverage firms, including reinsurers. The pool will cover war-risk insurance for vessels operating in conflict zones and high-risk maritime corridors, and will be available for 10 years with a possible extension of five years. Insurance cover will be provided to India-flagged and India-controlled vessels and to vessels originated from or destined to India, and the pool will extend protection to cargo movements between international ports and India in both directions. An official said the mechanism is designed to maintain continuity of risk coverage during geopolitical uncertainties, stabilise trade flows, and reduce cost pressures on exporters and logistics stakeholders.