India Launches ₹12,980 Crore Maritime Insurance Pool to Shield Trade from Global Conflict
Amid rising tensions in the Middle East and global geopolitical instability, the Indian government has officially implemented the Bharat Maritime Insurance (BMI) Pool to provide independent, comprehensive coverage for Indian-flagged vessels.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a sovereign guarantee of ₹12,980 crore (approx. $1.4 billion) to operationalize the BMI Pool. This strategic move, which follows four years of planning, aims to reduce India's heavy reliance on international insurance groups, especially when global insurers withdraw coverage due to sanctions or conflict. The pool will provide complete protection—covering hull, machinery, cargo, and third-party liabilities (P&I)—specifically for ships operating in high-risk "war zones." Additionally, the government announced a ₹25,000 crore Maritime Development Fund to modernize ports and support ship acquisition, ensuring the long-term security of India’s maritime trade.