Cabinet Approves Bharat Maritime Insurance Pool with Rs 12,980 Crore Sovereign Guarantee

In a major move aimed at strengthening India’s maritime resilience, the Union Cabinet has approved the creation of the Bharat Maritime Insurance Pool, backed by a sovereign guarantee of Rs 12,980 crore. Announced by the Ministry of Ports, Shipping and Waterways on April 18, 2026, the new mechanism is designed to shield India’s shipping and trade ecosystem from global insurance volatility while reducing dependence on foreign underwriters.

The proposed pool will provide insurance cover across key maritime segments, including hull and machinery, cargo, protection and indemnity (P&I), and war risk. It is expected to support Indian-flagged and Indian-controlled vessels, including ships operating through conflict-prone international waters. The government said the mechanism will help maintain continuity of risk coverage even during geopolitical disruptions in major shipping corridors such as the Red Sea, Strait of Hormuz and the Gulf of Oman.

According to the official release, India’s maritime sector handles more than 70% of the country’s trade by volume and nearly 95% by value, making reliable insurance access strategically important. The new pool is intended to stabilise trade flows, ease cost pressures on exporters and logistics operators, and provide cover for ships carrying cargo between India and international ports in both directions.

The insurance framework will cover physical damage to ships, goods in transit, third-party liabilities such as crew injury and environmental damage, as well as war risk for vessels sailing through high-risk regions. Union Minister Sarbananda Sonowal described the decision as a transformational step that strengthens India’s maritime self-reliance and aligns with the broader Maritime India Vision 2030. Officials also said the move brings India closer to other major maritime nations such as the United Kingdom, Japan and South Korea, which already have state-supported maritime insurance arrangements.

PIB