The Bharat Maritime Insurance Pool (BMIP) is a government-backed, domestic marine insurance mechanism and a risk-sharing arrangement created to provide continuous and affordable coverage for India's maritime trade. The Union Cabinet approved the proposal on April 18, 2026, and the pool was launched by the Department of Financial Services (DFS) under the Ministry of Finance on May 12, 2026. It was established to address India's high dependence on foreign insurers and the International Group of P&I Clubs, whose sudden withdrawal of coverage or sharp premium hikes during geopolitical tensions, such as those in the Red Sea, threatened trade continuity.
The BMIP is supported by a sovereign guarantee of ₹12,980 crore (approximately $1.4 billion) and has a total capacity of $1.5 billion. The General Insurance Corporation of India (GIC Re) administers the pool, which covers four key risk categories: Hull and Machinery, Cargo, Protection & Indemnity (P&I), and War Risk. Policies are issued by member Indian insurers, and claims up to $100 million are met through the pooled capacity, with the sovereign guarantee acting as a backstop for higher claims. The initiative is a strategic step towards Atmanirbhar Bharat, strengthening domestic capacity and reducing vulnerability to global market volatility. Recently, the government expanded the pool by launching a sovereign-backed P&I insurance product, which covers third-party liabilities like oil pollution and wreck removal.