Department of Financial Services (DFS) launches sovereign-backed Protection & Indemnity insurance product under Bharat Maritime Insurance Pool (BMIP)

Key facts

• The Department of Financial Services (DFS), Ministry of Finance, launched India's first sovereign-backed Protection & Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP).
• The P&I insurance product was designed by The New India Assurance Company Limited.
• The initial P&I policy document was handed over by DFS Secretary Sanjay Lohiya to the Shipping Corporation of India Limited.
• The product covers third-party liabilities, including crew and cargo liability, pollution liability, and wreck removal.
• The policy provides an indemnity limit of up to USD 1.5 billion through the combined underwriting capacity of BMIP.
• BMIP was operationalised by DFS on May 12, 2026, with sovereign backing.
• As of July 29, 2026, BMIP has issued 1,608 policies covering Cargo War risks and Hull War risks.
• The establishment of BMIP has resulted in a 35 per cent to 40 per cent reduction in war risk premium rates compared to peak figures recorded during the West Asia conflict.