India’s Bharat Maritime Insurance Pool (BMIP) has reduced war-risk insurance premiums by up to 48%, as policymakers outlined a roadmap to build a domestic protection and indemnity (P&I) insurance framework at a stakeholder workshop in Mumbai on 5 June, according to an official release.
The workshop, organised in collaboration with the Directorate General of Shipping and the General Insurance Council, brought together senior representatives from the shipping and general insurance sectors, including Director General of Shipping (DGS) Shyam Jaganathan.
Launched in May with an initial underwriting capacity of ₹9.27bn (US$100m) and backed by a US$1.4bn sovereign guarantee, the pool has delivered tangible pricing benefits, with premiums declining by 27% for hull war risks and up to 48% for cargo war covers, the update said.
Debashish Prusty, Additional Secretary at the Department of Financial Services, outlined a three-step roadmap to strengthen India’s maritime insurance capabilities. This includes developing a domestic P&I product, extending BMIP coverage to select ocean-going vessels, and exploring alignment with international P&I frameworks through a mutual club structure that meets global standards.
Jaganathan highlighted that Indian tonnage has expanded by 36% since 2015 to around 1,600 vessels, while recent geopolitical disruptions have impacted trade flows.
India is looking to challenge the dominance of global P&I Clubs through the BMIP framework. More than 80 policies have already been issued since the pool’s launch, supported by competitive pricing, improved service standards, and targeted outreach aimed at both domestic and international tonnage, The Economic Times reported Jaganathan as saying.
He also pointed to shifting market dynamics caused by geopolitical developments, including sanctions that have restricted access to traditional P&I cover for certain vessels, giving rise to so-called “shadow fleet”.
Against this backdrop, Jaganathan emphasised the need for India to position itself as a reliable and credible alternative in global maritime insurance. He added that the BMIP approach will initially focus on hull and machinery coverage and coastal trade segments, with a gradual expansion strategy based on competitive pricing and service delivery to attract broader participation over time.
The workshop also included discussions with marine underwriters, shipowners, adjusters and other stakeholders on structuring domestic P&I solutions to address immediate coverage needs.
