India Launches First Sovereign-Backed Maritime Liability Insurance

The newly introduced P&I policy provides financial protection against a wide range of third-party liabilities faced by ship owners and operators.

India has launched its first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP), marking a significant step towards strengthening the country's maritime insurance ecosystem and reducing dependence on overseas insurers.

The product, designed by The New India Assurance Company Limited, was launched at an event organised by the Department of Financial Services (DFS), Ministry of Finance, in New Delhi. During the event, the Secretary of the Department of Financial Services handed over the first P&I insurance policy to the Shipping Corporation of India Limited.

The programme was attended by senior officials from the Department of Financial Services, the Directorate General of Shipping, the General Insurance Corporation of India, the Ministry of Ports, Shipping and Waterways, the General Insurance Council, and representatives of the shipping industry.

Coverage of up to USD 1.5 billion

The newly introduced P&I policy provides financial protection against a wide range of third-party liabilities faced by ship owners and operators. These include liabilities related to crew members, cargo, marine pollution, wreck removal and access to a 24x7 global port correspondent network.

The combined underwriting capacity of the Bharat Maritime Insurance Pool provides an indemnity limit of up to USD 1.5 billion, offering substantial financial protection for Indian shipping companies operating across international waters. Officials said the addition of P&I insurance significantly broadens the scope of the Bharat Maritime Insurance Pool and strengthens India's ability to manage maritime risks through domestic insurance capacity.

War risk insurance pool gains strong response

The Bharat Maritime Insurance Pool, backed by a sovereign guarantee, became operational on 12 May 2026 to ensure uninterrupted war risk insurance coverage for Indian maritime stakeholders during periods of geopolitical uncertainty. According to the Department of Financial Services, the initiative has already delivered tangible benefits. Since its launch, war risk insurance premiums have fallen by around 35–40% compared with the peak levels witnessed during the West Asia conflict. As of 29 July 2026, the pool had issued 1,608 policies covering cargo war risks and hull war risks, reflecting growing confidence among Indian shipping operators.

Supporting Atmanirbhar Bharat in maritime insurance

The government said the expansion of BMIP to include Protection and Indemnity insurance will further strengthen India's maritime risk management framework while encouraging the development of domestic underwriting expertise. By building specialised insurance capabilities within the country, the initiative is expected to reduce reliance on foreign insurance markets, retain greater economic value within India and improve the resilience of the maritime sector.

Officials said the move aligns with the broader vision of Atmanirbhar Bharat, supporting a self-reliant insurance ecosystem that can meet the evolving needs of India's expanding maritime trade and shipping industry.