Bharat Maritime Insurance Pool: How Will This Help India's Ships Or Those Entering Country's Ports?

Last Updated:April 18, 2026, 17:28 IST

India approves BMI Pool with Rs 12,980 crore sovereign guarantee to ensure affordable cover for vessels amid global volatility, managing key maritime risks locally.

The Union Cabinet on Saturday approved the proposal for creation of a domestic insurance pool, Bharat Maritime Insurance Pool (BMI pool), with a sovereign guarantee of Rs 12,980 crore to facilitate continuous maritime insurance coverages.

According to an official statement, the BMI pool aims to ensure that Indian trade continues to have access to affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice-versa, even when transiting volatile maritime corridors.

How Will BMI Pool Help?

The government has approved the formation of BMI pool for Indian flagged or controlled vessels or vessels destined to or starting from India, backed by a sovereign guarantee.

“With increased global volatility and geopolitical instability, maritime trade has been impacted with increased risk of losses for cargo and vessels resulting in increased insurance costs and uncertainty in continuous availability of insurance," the statement stated. “There was a need for a domestic maritime risk covering pool to maintain sovereignty and continuity of trade in face of withdrawal of coverage due to sanctions or due to geopolitical tensions."

The pool would cover all maritime risks like Hull and Machinery, Cargo, P&I and War risk. The policies will be issued by insurers that are Pool members, using the combined underwriting capacity of the pool, which would be around ₹950 crore.

Besides, the BMI pool is also aimed to help in managing liability insurance locally, tailored to Indian Shipping conditions and regulatory requirements, develop specialized Marine underwriting, claims management and legal expertise within India.

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