Cabinet Clears Rs 12,980 Cr Bharat Maritime Insurance Pool: What Is It And How Will It Protect Ships Amid Hormuz Tensions?

In a significant move to facilitate continuous maritime insurance coverages, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday, approved the proposal for the creation of 'Bharat Maritime Insurance Pool' (BMIP) with a sovereign guarantee of Rs 12,980 crores.

Announcing the initiative, Information and Broadcasting Minister Ashwini Vaishnaw emphasised that the domestic insurance pool will serve as a strategic shield for Indian trade, particularly for tankers transporting essential crude oil.

✅ Cabinet has approved the proposal for creation of ‘Bharat Maritime Insurance Pool’ (BMIP) with a sovereign guarantee of Rs 12,980 crores to facilitate continuous maritime insurance coverages

✅The Domestic Insurance Pool addresses global volatility, geopolitical instability… pic.twitter.com/xMz5kZWRKU

— Ministry of Finance (@FinMinIndia) April 18, 2026

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What Is Bharat Maritime Insurance Pool?

The Cabinet has approved the proposal for the creation of a domestic insurance pool, Bharat Maritime Insurance Pool. This fund is designed for vessels that fly the Indian flag, are under Indian operational control, or are calling at Indian ports. This aims to provide the ships with a continuous safeguard against various maritime risks during their operations, Jagran.com reported.

To ensure the fund's security and reliability, the central government has provided a sovereign guarantee of Rs 12,980 crore.

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Why Is It Necessary?

Ships navigating difficult or volatile sea routes often face challenges in securing international insurance, as coverage can become unavailable or expensive. This creates uncertainty for vessels.

With this domestic insurance pool, the government aims to provide affordable and continuous insurance for ships carrying cargo to and from Indian ports, ensuring a steady flow of imports and exports, including commodities such as crude oil.

How Will The Fund Work?

Insurance funds under the BMI pool will be issued by member insurance companies rather than the government directly. The fund utilises a combined underwriting capacity, which the government estimates will be approximately Rs 950 crore. This aims to provide a broader financial base for Indian merchant ships.

(With Jagran.com Inputs)