Bharat Maritime Insurance Pool (BMI Pool)

The government has created the Bharat Maritime Insurance Pool (BMI Pool) for India’s shipping and maritime trade. Read here to learn more.

Bharat Maritime Insurance Pool (BMI Pool) is aimed at insulating India’s maritime trade from global volatility.

The move is expected to significantly reduce dependence on foreign underwriters and ensure uninterrupted risk coverage for Indian shipping.

BMI Pool will provide comprehensive coverage across key segments, hull and machinery, cargo, protection and indemnity (P&I), and war risk, for Indian-flagged and Indian-controlled vessels, including those operating in conflict-prone international waters.

This is an important step towards powering India’s shipping industry to become one of the top maritime nations by 2047.

Bharat Maritime Insurance Pool (BMI Pool)

The Bharat Maritime Insurance Pool (BMI Pool) is a government-backed maritime insurance mechanism created to ensure uninterrupted insurance coverage for India’s shipping and maritime trade during periods of geopolitical instability and global insurance disruptions.

It is designed to strengthen India’s:

• Maritime security
• Trade resilience
• Financial sovereignty
• Shipping self-reliance
• With an insurance capacity of about $1.5 billion
• Backed by a sovereign guarantee of approximately ₹12,980 crore

It aims to reduce India’s dependence on foreign marine insurers and reinsurers.

Ministry and Administration

Ministry

The scheme is under:

• Department of Financial Services
• Ministry of Finance

Pool Administrator

• Managed by General Insurance Corporation of India

Governance Structure

The Bharat Maritime Insurance Pool is overseen by:

1. Governing Body

Responsible for:

• Policy direction
• Coordination
• Oversight

2. Underwriting Committee

Responsible for:

• Risk assessment
• Underwriting standards
• Claims oversight

Coverage Under Bharat Maritime Insurance Pool

The pool covers major maritime insurance risks, including:

1. Hull and Machinery Insurance

Covers:

• Physical damage to ships
• Machinery breakdown

2. Cargo Insurance: Protects Goods transported through sea routes
3. Protection and Indemnity (P&I)

Covers:

• Third-party liabilities
• Crew claims
• Pollution liabilities

4. War Risk Insurance

Covers:

• Damage from war
• Piracy
• Missile attacks
• Geopolitical conflict zones

Who is Covered?

The Bharat Maritime Insurance Pool provides insurance for:

• Indian-flagged vessels
• Indian-controlled vessels
• Ships originating from India
• Ships destined for India

How the BMI Pool Operates

Policy Issuance

• Domestic insurers issue policies using the combined underwriting capacity of pool members

Combined Capacity

• Approximately ₹950 crore underwriting capacity

Claims Handling

Up to $100 Million

• Handled directly through Pool’s own insurance capacity

Above $100 Million

• The Sovereign guarantee acts as a safety net
• This ensures large claims can still be honoured during crises.

Why Was the BMI Pool Needed?

1. Rising Geopolitical Risks

Conflicts in:

• Red Sea
• Strait of Hormuz
• West Asia

have sharply increased:

• Shipping risks
• Insurance premiums
• Trade uncertainty

2. Impact of International Sanctions

Global sanctions can suddenly:

• Cut access to foreign insurers
• Disrupt reinsurance support
• Affect shipping operations

The BMI Pool helps India maintain continuity independently.

3. Reducing Foreign Dependence

The pool aims to:

• Reduce foreign exchange outflow
• Build domestic underwriting expertise
• Strengthen Indian insurance capacity

4. Maritime Self-Reliance

It supports:

• Atmanirbhar Bharat in shipping and finance
• Strategic trade security
• Economic resilience

Importance for India

India’s Maritime Dependence

Trade

• Nearly 95% of India’s trade by volume and 70% by value moves through sea routes.

Cargo Handling

• In FY 2024-25, major Indian ports handled around 855 million tonnes of cargo.

Shipping Fleet

India has:

• Around 1,549 ships
• Only about 1.2% of the global shipping fleet

Shipbuilding

• India contributes less than 1% to global commercial shipbuilding

Seafaring Workforce

• India provides about 12% of the global seafaring workforce, making it one of the world’s largest suppliers of maritime manpower.

Significance of BMI Pool

Economic Security

Ensures uninterrupted:

• Imports
• Exports
• Energy transportation

Strategic Security

Protects maritime trade during:

• Wars
• Sanctions
• Regional instability

Insurance Sector Development

Helps India develop:

• Marine insurance expertise
• Claims management capability
• Reinsurance strength

Trade Competitiveness

Stable insurance coverage reduces:

• Trade disruptions
• Freight uncertainties
• Cost escalation

Challenges

Limited Domestic Capacity

India still depends heavily on:

• Global reinsurers
• International underwriting networks

High-Risk Maritime Zones: War-risk claims can become extremely expensive during conflicts.

Need for Maritime Expansion

Compared to major maritime powers, India still has:

• Small commercial fleet
• Weak shipbuilding ecosystem

Conclusion

The Bharat Maritime Insurance Pool marks an important step toward India’s maritime and financial sovereignty. In an era of geopolitical uncertainty, sanctions, and global supply-chain disruptions, the BMI Pool seeks to ensure that India’s shipping lifelines remain protected, resilient, and strategically autonomous.