India Launches First Sovereign Backed P&I Insurance Product

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The Department of Financial Services (DFS) under the Ministry of Finance launched India's first government-backed Protection & Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP).

This is India's first sovereign-backed marine insurance product designed to protect shipowners and charterers from third-party liabilities during shipping operations.
The New India Assurance Company Limited designed and manages this insurance product as the lead underwriter.
It functions under the Bharat Maritime Insurance Pool (BMIP), an initiative managed by the Department of Financial Services (DFS) with full sovereign guarantee backing.
The main aim is to build strong domestic marine risk management capabilities, lower reliance on expensive foreign insurance, and protect Indian vessels during global supply chain disruptions.

The product offers a total combined indemnity cover of up to USD 1.5 billion backed by a sovereign guarantee to absorb major maritime liability claims.
It covers various third-party risks including crew injury, cargo damage, marine oil spills, and the costs of removing shipwrecks.
A 24x7 global network of port correspondents supports the program to offer immediate legal aid and quick claim settlements across world ports.
It expands the scope of BMIP beyond cargo and hull war risk to cover comprehensive third-party liabilities for Indian shipping.

The product reduces reliance on foreign insurance providers and international P&I Clubs, helping keep insurance premiums and risk management within India.
War-risk insurance premiums for domestic ships have dropped by 35-40% since the launch of BMIP, reducing logistics costs and making Indian shipping more resilient to geopolitical tensions.