India’s Maritime Insurance Security through Bharat Maritime Insurance Pool

 

 

1. The Bharat Maritime Insurance Pool (BMIP) was approved on 18 April 2026 and formally launched on 12 May 2026.

2. BMIP is India’s first domestic maritime insurance pool, with an underwriting capacity of ₹13,906.50 crore (USD 1.5 billion).

3. The Pool is backed by a sovereign guarantee of ₹12,980 crore (USD 1.4 billion).

4. BMIP provides coverage for Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War Risk.

5. Eligible vessels include Indian-flagged vessels, vessels owned, managed or controlled by Indian entities, and cargo vessels destined to or originating from India.

6. BMIP has an initial duration of 10 years, extendable up to 15 years.

7. Policies under BMIP are issued by domestic insurers that are members of the Pool, while risks are collectively reinsured according to each member’s committed capacity.

8. Claims up to USD 100 million are met through accumulated reserves and reinsurance recoveries, while larger claims can invoke the sovereign guarantee after Pool reserves are exhausted.

9. General Insurance Corporation of India (GIC Re) serves as the Pool Administrator and manages the day-to-day functioning of BMIP.

10. India operates 12 Major Ports and 217 Non-Major Ports, which handled about 1,668 million metric tonnes of cargo during 2025–26.

11. India has a coastline of about 11,098 km, an Exclusive Economic Zone of about 2.4 million sq. km, and more than 14,500 km of inland waterways.

12. As of mid-2026, the Indian-flagged fleet consisted of 1,609 ships with a gross tonnage of 14.33 million GT, while about 95% of India’s trade value and 70% of its trade volume moved through maritime routes.

13. Before BMIP, Indian shipowners depended heavily on foreign P&I clubs, resulting in an annual outflow of about USD 45–60 million in P&I premiums.

14. As of 7 September 2026, BMIP had issued 3,000 Cargo War policies, 92 Hull War-risk policies and 3 P&I policies, while War-risk insurance premiums had declined by about 35–40% from the peak of the West Asia conflict.

15. India’s first P&I policy under BMIP was issued on 30 July 2026 to Shipping Corporation of India Limited, while the first Hull and Machinery War-risk policy was issued on 12 May 2026 to M/s Hoger Offshore and Marine Private Limited.

 

 

 

Must Know Terms  :

 

 

 

1.Maritime Insurance Pool

A pooled insurance mechanism that combines the capacity of participating domestic insurers to cover large maritime risks.

 

2. Protection and Indemnity

Protection and Indemnity (P&I) insurance covers third-party liabilities such as pollution, crew injury, wreck removal and cargo-related claims.

 

3. Hull and Machinery Insurance

Hull and Machinery insurance protects the ship’s structure, propulsion systems and installed equipment against covered risks.

 

4. War Risk Insurance

War Risk insurance provides protection against losses caused by armed conflict, piracy, terrorism and hostile seizure of vessels.

 

5. Sovereign Guarantee

A sovereign guarantee is government-backed financial support that can be used to meet large insurance obligations after the Pool’s own reserves are exhausted.

 

6. Reinsurance

Reinsurance is the transfer or sharing of insurance risk among insurers to increase capacity and reduce the financial burden of major claims.

 

 

 

MCQ :

 

 

 

1. Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 2 and 3
(c) 2 and 3 only
(d) 1 and 3 only

2. The underwriting capacity of the Bharat Maritime Insurance Pool is:

(a) ₹12,980 crore
(b) ₹10,000 crore
(c) ₹13,906.50 crore
(d) ₹15,000 crore

3. Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

4. Select the correct answer using the code given below.

(a) 1 and 2 only
(b) 2, 3 and 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4

5. Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 2 and 3
(c) 2 and 3 only
(d) 1 and 3 only

6. The initial duration of BMIP is:

(a) 5 years, extendable to 10 years
(b) 10 years, extendable to 15 years
(c) 15 years, extendable to 20 years
(d) 20 years without extension

7. Which of the statements given above are correct?

(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3

8. Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 2 and 3
(c) 2 and 3 only
(d) 1 and 3 only

9. Which institution serves as the Pool Administrator of BMIP?

(a) General Insurance Corporation of India
(b) Insurance Regulatory and Development Authority of India
(c) Shipping Corporation of India
(d) New India Assurance Company Limited

10. How many of the pairs given above are correctly matched?

(a) Only one
(b) Only two
(c) All three
(d) None

11. Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

12. As of mid-2026, which of the following correctly describes India’s maritime trade and fleet?

(a) 1,609 ships, 14.33 million GT, 95% of trade value and 70% of trade volume moving through maritime routes
(b) 1,609 ships, 10 million GT, 70% of trade value and 95% of trade volume moving through maritime routes
(c) 1,500 ships, 14.33 million GT, 50% of trade value and 70% of trade volume moving through maritime routes
(d) 1,609 ships, 20 million GT, 95% of trade value and 50% of trade volume moving through maritime routes

13. Before the launch of BMIP, Indian shipowners’ dependence on foreign Protection and Indemnity clubs resulted in an estimated annual outflow of:

(a) USD 10–20 million
(b) USD 25–40 million
(c) USD 45–60 million
(d) USD 75–100 million

14. Which of the statements given above are correct?

(a) 1, 2 and 3 only
(b) 1, 2, 3 and 4
(c) 2, 3 and 4 only
(d) 1, 3 and 4 only

15. Which of the pairs given above are correctly matched?

(a) 1 and 2 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4
(d) 1 and 4 only