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India Strengthens Maritime Shield
War Risk Premium Drops by 35–40%; Maritime Trade Gets Stronger Financial Protection
Pooja Srivastava | Anytime News Network
In a landmark move towards strengthening India’s maritime ecosystem and insurance self-reliance, the Department of Financial Services (DFS), Ministry of Finance, has launched the country’s first sovereign-backed Protection & Indemnity (P&I) Insurance Product under the Bharat Maritime Insurance Pool (BMIP). The initiative marks a transformative step in safeguarding India’s shipping sector against global geopolitical uncertainties.
Historic Milestone for Indian Shipping
During a high-level event in New Delhi, the DFS Secretary formally handed over the first P&I insurance policy, issued by The New India Assurance Company Ltd., to the Shipping Corporation of India (SCI). The policy offers comprehensive protection covering crew liabilities, cargo claims, pollution liabilities, wreck removal, and other third-party risks, with a combined indemnity capacity of up to USD 1.5 billion.
War Risk Costs Decline Sharply
Since BMIP became operational on May 12, 2026, India’s maritime insurance market has witnessed a remarkable turnaround. War risk insurance premiums, which had surged during the peak of the West Asia conflict, have now declined by nearly 35–40 percent, significantly reducing operational costs for Indian shipping companies.
Strong Industry Response
As of July 29, 2026, BMIP has issued 1,608 policies covering cargo war risks and hull war risks, reflecting growing confidence among ship owners, exporters, and maritime stakeholders in India’s domestic insurance framework.
Boost to Atmanirbhar Bharat
The expansion of BMIP to include Protection & Indemnity (P&I) coverage is expected to strengthen India’s maritime risk management architecture, reduce dependence on foreign insurers, enhance domestic underwriting capabilities, and retain insurance value within the Indian economy.
A Strategic Leap for the Blue Economy
Industry experts believe the initiative reinforces India’s ambition to become a global maritime powerhouse while supporting the broader Atmanirbhar Bharat vision. By building resilient domestic insurance capacity and ensuring uninterrupted maritime risk coverage, India is laying a strong foundation for future growth in shipping, logistics, and the Blue Economy.
