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India launched its first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP) on 30 July 2026, issued by The New India Assurance Company and handed to the Shipping Corporation of India.
BMIP, operational since 12 May 2026 with a ₹12,980 crore (~$1.4 billion) sovereign guarantee, now offers a combined P&I indemnity limit of up to $1.5 billion, backed by a 24x7 global port correspondent network.
BMIP was approved by the Union Cabinet on 18 April 2026 to cover Hull & Machinery, Cargo, P&I, and War risk insurance, reducing India's dependence on foreign marine insurers.
War-risk insurance premiums have fallen 35-40% from peak levels during the West Asia conflict; BMIP had issued 1,608 cargo/hull war-risk policies by 29 July 2026.
A marine liability cover for third-party claims arising from vessel operations — crew claims, cargo claims, pollution liability, oil spill compensation, and wreck removal — distinct from Hull & Machinery or Cargo insurance which cover the ship/goods themselves.
Simple Analogy: Like third-party liability car insurance, but for the damage a ship or its cargo might cause to others, not damage to the ship itself.
Union Cabinet approves BMIP
BMIP becomes operational, ₹12,980 crore sovereign guarantee
1,608 cargo/hull war-risk policies issued
First sovereign-backed P&I policy issued
GS Paper III > Maritime Sector, Insurance
Banking & Insurance Awareness > Marine Insurance
Marine liability insurance covering third-party claims like crew injury, cargo loss, and pollution