India approves $1.4bn sovereign guarantee for maritime insurance pool

Int’l desk: India has approved a 129.8-billion-rupee ($1.4 billion) sovereign guarantee to establish the Bharat Maritime Insurance Pool (BMI Pool), aiming to safeguard the country’s shipping trade against rising global risks.

The decision was cleared by the Union Cabinet on April 18, 2026, under the chairmanship of Prime Minister Narendra Modi. The announcement was made by Information and Broadcasting Minister Ashwini Vaishnaw.

The BMI Pool will operate for an initial period of 10 years, with the option to extend it by an additional five years. The initiative is designed to ensure the continuity of maritime insurance coverage in situations where foreign insurers withdraw due to war, sanctions, or heightened geopolitical tensions.

The pool will provide coverage across key maritime risk segments, including hull and machinery, cargo, protection and indemnity (P&I), and war risks. It will support Indian-flagged vessels, India-controlled ships and vessels engaged in trade linked to India as either origin or destination.

Under the framework, domestic insurers will issue policies backed by a combined underwriting capacity and supported by the government guarantee. This structure is intended to strengthen the resilience of India’s maritime insurance ecosystem and reduce dependence on international providers.

Officials said the move would help maintain national sovereignty in trade by mitigating disruptions caused by the withdrawal of global insurers, which in recent years has driven up premiums and affected supply chains for critical imports such as crude oil and gas.

The initiative also addresses insurance gaps exposed by geopolitical developments, including tensions involving Iran and sanctions on Russia, as well as risks surrounding key shipping routes such as the Strait of Hormuz.

The move comes amid heightened uncertainty in global shipping markets, with ongoing regional conflicts and economic pressures affecting trade flows. The government expects the BMI Pool to provide affordable and reliable coverage, ensuring uninterrupted maritime trade that remains critical to India’s economic stability and growth.