The government of India has launched India's first sovereign-backed maritime liability insurance under the Bharat Maritime Insurance Pool ( BMIP).
This move will be aimed at strengthening the country's marine insurance ecosystem and reducing dependence on overseas insurers amid heightened geopolitical risks.
According to a release issued by the Press Information Bureau (PIB), the new insurance cover protects a range of maritime liabilities, including ship accidents, pollution-related damages and cargo claims.
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The Shipping Corporation of India ( SCI) has become the first company to receive a policy under the new scheme, marking the operational rollout of the sovereign-backed insurance cover.
The government said the policy offers insurance coverage of up to $1.5 billion for maritime liabilities, providing shipowners with enhanced financial protection against large-scale claims.
The PIB release also noted that the initiative has led to a sharp decline in war risk insurance costs. Premiums under the Bharat Maritime Insurance Pool have fallen by 35 to 40 percent compared with earlier levels, reversing the sharp increase seen during the conflict in West Asia.
According to the government, more than 1,600 war risk insurance policies have already been issued under the BMIP, highlighting growing adoption of the scheme by the maritime sector.
The government said the initiative is expected to strengthen India's maritime insurance capabilities while reducing the country's reliance on foreign marine insurers for critical shipping coverage.
The launch comes as global shipping routes continue to face disruptions and elevated risks, prompting efforts to build domestic capacity in maritime insurance, according to the PIB.
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The conflicts in West Asia and between Russia and Ukraine have prompted the government to introduce this initiative, as Indian seafarers and merchant vessels have increasingly faced risks in conflict zones.
In recent months, shipping routes through the Strait of Hormuz and waters near the Russia-Ukraine conflict have posed significant challenges for India's maritime sector.
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