India Launches First Sovereign-Backed Maritime Insurance Product

The Department of Financial Services within the Ministry of Finance launched India's first sovereign-backed Protection and Indemnity (P&I) insurance product on July 30, 2026, in New Delhi. Operating under the Bharat Maritime Insurance Pool (BMIP), the product was designed by The New India Assurance Company Limited and provides an indemnity limit of up to $1.5 billion to cover third-party liabilities, including pollution, wreck removal, and crew and cargo claims.

During the launch event, Financial Services Secretary Sanjay Lohia delivered the first P&I policy document to the Shipping Corporation of India Ltd. The initiative is part of the Atmanirbhar Bharat vision, seeking to strengthen domestic maritime risk management and decrease dependence on foreign insurers.

This launch expands the capabilities of the BMIP, which became operational on May 12, 2026. Initially focused on war-risk insurance, the pool has already issued 1,608 policies for cargo and hull war risks. This existing framework has reportedly reduced war risk premium rates by 35% to 40% compared to the peaks seen during the West Asia conflict.