Union Minister Sarbananda Sonowal hails Rs 12,980 crore Maritime Insurance Pool approved by Centre

The Union Cabinet led by Prime Minister Narendra Modi has approved the creation of a domestic maritime insurance pool with a sovereign guarantee of Rs 12,980 crore, aimed at protecting India’s shipping sector from global uncertainties.

 

The proposed Bharat Maritime Insurance Pool (BMI Pool) will offer comprehensive coverage for Indian-flagged and controlled vessels, including hull and machinery, cargo, protection and indemnity (P&I), and war risk, especially for operations in conflict-prone waters. The initiative is expected to significantly reduce dependence on foreign insurers and ensure uninterrupted risk coverage.

 

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal termed the move a “transformational step,” stating that it strengthens India’s maritime resilience and enhances the country’s ability to safeguard its trade in challenging global scenarios.

 

India’s maritime sector accounts for over 70% of trade by volume and nearly 95% by value. However, disruptions in key global routes such as the Red Sea and Strait of Hormuz had exposed vulnerabilities due to reliance on foreign insurance providers, who raised premiums or withdrew coverage during crises.

 

The BMI Pool aims to ensure continuity of coverage irrespective of geopolitical developments, stabilising trade flows and reducing financial pressure on exporters and logistics stakeholders. It will also cover third-party liabilities, including crew safety and environmental risks, while enabling operations in high-risk maritime zones.

 

Officials said the initiative aligns with global practices followed by major maritime nations and forms a key component of India’s long-term vision to emerge as a leading maritime power, reinforcing strategic self-reliance and economic stability.