India has issued its first set of marine war risk policies under the ₹129.8bn (US$1.5bn) Bharat Maritime Insurance Pool (BMIP), backed by a US$1.4bn sovereign guarantee, commencing the operational rollout of the facility introduced amid heightened Middle East tensions.
In April, India’s Union Cabinet approved the creation of the BMIP to provide continuous insurance coverage for Indian‑flagged and controlled vessels, as well as cargo linked to India, across hull and machinery, cargo, protection and indemnity (P&I), and war risk segments.
At the launch event, Department of Financial Services (DFS) Secretary, M. Nagaraju, handed over the first marine hull and machinery war policy to Hoger Offshore and Marine Private Limited, which was underwritten by New India Assurance under the BMIP framework. The policy provides protection against war perils for vessels operating in high‑risk zones.
Further policies were issued to Vedanta Sterlite Copper Ltd. to cover marine cargo war risk associated with imports, and to Balrampur Chini Mills Limited, indicating early uptake of the pool by industrial and shipping‑linked corporates.
The issuance of policies at the launch comes as authorities move to address concerns over potential disruptions to maritime insurance coverage in sanction‑sensitive or conflict‑impacted regions. Risks of foreign reinsurers and protection and indemnity clubs restricting or withdrawing cover in high‑risk environments, potentially affecting shipping operations and trade flows, resulted in the creation of this pool.
A governing body has also been established to supervise the functioning of the pool, alongside an underwriting committee responsible for maintaining consistent and technically sound underwriting standards. The General Insurance Corporation of India (GIC Re) is the administrator of the pool and will oversee reporting, reinsurance arrangements and performance monitoring.
Policies will be issued by domestic insurers that are pool members, using the combined underwriting capacity of the BMIP. These risks would then be reinsured by all pool members, in proportion to their capacity commitment in the pool.
Under the claims framework, losses of up to US$100m will be met from the pool’s own resources, while claims exceeding that threshold will be supported by the sovereign guarantee, which acts as a contingent backstop after the pool’s reserves and reinsurance arrangements are exhausted.
The government said the establishment of the BMIP is intended to strengthen India’s maritime risk protection framework and enhance sovereign control over maritime trade, particularly in scenarios where geopolitical developments or sanctions disrupt access to international insurance markets.
