BMIP launches India's first sovereign-backed P&I insurance product
The new cover offers protection of up to $1.5 billion against third-party liabilities, while the pool has already issued 1,608 war risk policies.
The Department of Financial Services (DFS), Ministry of Finance, has launched India’s first sovereign-backed Protection & Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP). The product, designed by New India Assurance Company, was launched at an event chaired by the Secretary, DFS, in New Delhi.
During the event, the Secretary, DFS handed over the first P&I policy issued under BMIP to Shipping Corporation of India. Issued by New India Assurance Company, the policy provides financial protection against third-party liabilities, including crew and cargo liability, pollution liability and wreck removal. It also offers access to a 24x7 port correspondent network with an indemnity limit of up to $1.5 billion through the combined capacity of the pool.
The Secretary, DFS congratulated all stakeholders involved in developing the P&I insurance product and described it as a milestone for India’s maritime sector.
BMIP, backed by a sovereign guarantee, became operational on 12 May 2026. According to the Department of Financial Services, the pool has achieved its objective of ensuring uninterrupted war risk insurance capacity for Indian stakeholders and has seen strong market acceptance.
The department said the introduction of BMIP has reduced war risk premium rates by around 35-40% compared with the levels seen during the peak of the West Asia conflict. As of 29 July 2026, the pool had issued 1,608 policies covering cargo war risks and hull war risks.
According to the department, adding P&I coverage to BMIP will strengthen India's maritime risk management framework, support the development of domestic underwriting capacity, improve the resilience of the country's maritime insurance ecosystem and enhance confidence among shipping and trade stakeholders.
The government said the initiative supports its goal of building domestic insurance capabilities by reducing reliance on foreign markets for specialised insurance solutions and ensuring that more value generated from India's maritime trade remains within the country.
