The Union Cabinet has approved the creation of a ₹12,980-crore maritime insurance pool, Bharat Maritime Insurance Pool (BMI), to reduce Indian merchant shippers' reliance on global risk-coverage firms.
The pool will specifically cover war-risk insurance for vessels operating in conflict zones and high-risk maritime corridors, securing supplies amid uncertainties in the Persian Gulf.
Major reinsurers have sharply raised premiums and scrapped many coverages amid heightened risks and a protracted conflict in West Asia.
The pool will be available for 10 years and can be extended by five years, providing insurance cover to India-flagged and India-controlled vessels.
This landmark decision ensures that India has the sovereign capacity to safeguard its maritime trade, even in challenging global scenarios.
