The Union Cabinet, led by Prime Minister Narendra Modi, approved the creation of the Bharat Maritime Insurance Pool (BMI), valued at ₹12,980 crore. This initiative addresses rising underwriting costs linked to the West Asia war, aiming to reduce Indian merchant shippers’ dependence on global risk-coverage firms. The decision will alleviate tight insurance conditions and lower costs for Indian vessels, as global underwriters have increased risk-mitigation charges to historic highs.
The insurance pool will specifically cover war-risk insurance for vessels in conflict zones and high-risk maritime corridors. It is designed to secure supplies amid uncertainties in the Persian Gulf, a crucial route for India’s imported oil and gas. The pool will be available for 10 years, with a possible five-year extension, and will cover India-flagged and India-controlled vessels, as well as those originating from or destined to India. Shipping minister Sarbananda Sonowal emphasized the importance of this decision for safeguarding India’s maritime trade.
