Union Cabinet has approved the Bharat Maritime Insurance Pool with a sovereign guarantee of ₹12,980 crore to ensure steady maritime insurance coverage for Indian shipping.
The new pool will support Indian-flagged vessels, Indian-controlled ships, and any vessels that start or end their journey in India. It will cover key risks such as hull and machinery damage, cargo loss, protection and indemnity, and war-related threats.
Information and Broadcasting Minister Ashwini Vaishnaw announced the decision after the Cabinet meeting chaired by Prime Minister Narendra Modi. He said the pool will keep insurance available and affordable even when global markets face problems.
The scheme will run for 10 years and can extend for another five years. General Insurance Corporation of India (GIC Re) will act as the pool administrator. It will bring together capacity from Indian insurers to handle risks locally.
This step comes as conflicts in West Asia have made many foreign insurers pull back from high-risk sea routes. The pool will reduce India’s dependence on overseas providers and protect trade flows through busy shipping lanes.
The Bharat Maritime Insurance Pool forms part of efforts to strengthen the country’s maritime sector. It will help keep shipping costs stable and support smooth movement of goods, including energy imports.
India’s maritime insurance market has long relied on foreign reinsurers and protection and indemnity clubs. The new domestic pool marks a shift toward greater self-reliance in this area. It will safeguard national trade interests during periods of global uncertainty and add resilience to the shipping industry.
