On 30 July 2026, the Department of Financial Services (DFS) launched India’s first sovereign‑backed Protection & Indemnity (P&I) insurance product. The scheme is part of the Bharat Maritime Insurance Pool (BMIP) and was designed by the New India Assurance Company.
Key Developments
- 30 July 2026: Financial Services Secretary Sanjay Lohia handed over the first P&I policy to Shipping Corporation of India Ltd.
- Coverage includes third‑party liabilities such as crew & cargo liability, pollution liability, wreck removal and a 24×7 port correspondent network, with an indemnity limit of up to $1.5 billion.
- Since its start on 12 May 2026, the pool, backed by a sovereign guarantee, has issued 1,608 war‑risk policies (cargo and hull) as of 20 July 2026.
- War‑risk premium rates have fallen by roughly 35‑40 % compared with levels during the peak of the West Asia conflict.
Important Facts
The BMIP was created to ensure uninterrupted war risk insurance capacity for Indian stakeholders. Its primary objective—providing continuous war‑risk cover—has been met, demonstrating strong market acceptance. The pool’s combined capacity allows high‑value indemnity limits, reducing reliance on foreign insurers.
Exam Relevance
This development touches several UPSC syllabus areas. For GS‑3 (Economy), it illustrates government‑driven financial market interventions, risk‑management mechanisms for maritime trade, and the push for Atmanirbhar Bharat in specialised insurance. For GS‑2 (Polity), it showcases the role of the Ministry of Finance and public sector undertakings like SCI in policy implementation.
Way Forward
Extending the BMIP to cover full P&I risks will further strengthen India’s maritime risk‑management framework. Continued development of domestic underwriting capacity will reduce dependence on foreign markets, keep insurance premiums competitive, and enhance the resilience of India’s maritime trade ecosystem.