Union Cabinet approves Bharat Maritime Insurance Pool (BMI pool) with ₹12,980 crore sovereign guarantee

Key facts

• The Union Cabinet has approved the formation of the Bharat Maritime Insurance Pool (BMI pool) to provide insurance coverage for Indian-flagged or controlled vessels.
• The Centre has provided a sovereign guarantee of ₹12,980 crore to facilitate insurance for maritime risks including hull, machinery, cargo, protection and indemnity (P&I), and war.
• The BMI pool will have a combined underwriting capacity of approximately ₹950 crore, with policies issued by member insurers.
• The pool includes participation from reinsurers such as General Insurance Corporation of India (GIC Re), Allianz-Jio Re, and Valueattics Re.
• A dedicated Governing Body will be constituted to oversee the formation and functioning of the BMI pool.
• The initiative aims to reduce the high dependence of Indian vessels on the International Group of Protection and Indemnity (IGP&I) Club for third-party liability insurance.
• The pool ensures affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice-versa, even in volatile maritime corridors.