India has launched its first sovereign-backed Protection and Indemnity insurance product under the Bharat Maritime Insurance Pool, marking an important step towards strengthening domestic insurance capacity for the country’s shipping and maritime trade sectors.
The product was formally introduced by the Department of Financial Services at an event in New Delhi. DFS Secretary Sanjay Lohiya presented the first Protection and Indemnity policy document to the Shipping Corporation of India Limited.
The initiative is intended to reduce India’s dependence on overseas maritime insurance markets, improve the availability of specialised risk coverage and provide greater stability to shipowners and trade operators during periods of geopolitical uncertainty.
Protection and Indemnity Coverage Added
Protection and Indemnity insurance, commonly known as P&I insurance, covers liabilities faced by shipowners and operators that are generally outside standard hull and machinery insurance.
These liabilities can include third-party injury, loss of life, cargo damage, pollution, wreck removal and other legal or operational claims arising from maritime activity.
By extending the Bharat Maritime Insurance Pool to include P&I coverage, the government aims to create a broader domestic framework for managing complex maritime risks.
The new product is expected to support Indian shipping companies by improving access to insurance protection backed by a sovereign-supported mechanism.
War-Risk Premiums Decline
According to the Ministry of Finance, war-risk insurance premiums have declined by approximately 35% to 40% from the levels recorded during the peak of the conflict in West Asia following the introduction of the Bharat Maritime Insurance Pool.
A total of 1,608 policies covering cargo war risks and hull war risks had been issued under the pool as of the day preceding the launch.
War-risk insurance provides protection against losses caused by events such as armed conflict, hostile action, detention, seizure and damage to vessels or cargo in high-risk maritime regions.
The reduction in premium rates is expected to lower operating costs for Indian shipping companies and exporters using routes affected by geopolitical tensions.
Building Domestic Underwriting Capacity
The Bharat Maritime Insurance Pool has been designed to ensure the continued availability of maritime war-risk insurance while developing underwriting expertise within India.
The mechanism brings insurers together to collectively cover risks that may be too large, specialised or volatile for a single insurer to manage independently.
The Ministry of Finance said the pool would enhance confidence among Indian shipowners, exporters, importers and other maritime stakeholders by ensuring that essential insurance coverage remains available during disruptions in global insurance markets.
Developing domestic underwriting capacity could also help retain a larger share of maritime insurance premiums within India and reduce exposure to sudden changes in international insurance pricing.
Strengthening India’s Maritime Risk Framework
The inclusion of Protection and Indemnity insurance expands the scope of the Bharat Maritime Insurance Pool beyond cargo and hull war risks.
It is expected to create a more comprehensive maritime risk-management system covering vessels, cargo and third-party liabilities.
The development comes as India seeks to expand its shipping capacity, improve port infrastructure and increase its participation in global maritime trade.
A stronger domestic insurance ecosystem will be important for supporting Indian-flagged vessels, protecting commercial interests and improving the resilience of supply chains operating through strategically sensitive sea routes.
The sovereign-backed product represents a significant institutional development for India’s maritime sector and could provide a foundation for additional specialised shipping insurance products in the future.
Reference
News on AIR
“India’s First Sovereign-Backed Maritime Insurance Product Launched”
Published on July 30, 2026
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