Cabinet approves Bharat Maritime Insurance Pool with ₹12,980 crore sovereign guarantee
The Union Cabinet on 18 April 2026 approved a domestic 'Bharat Maritime Insurance Pool' (BMI pool), backed by a sovereign guarantee of ₹12,980 crore, to keep maritime insurance available for Indian trade even through volatile sea corridors.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi on 18 April 2026 approved creation of the 'Bharat Maritime Insurance Pool' (BMI pool), a domestic insurance pool backed by a sovereign guarantee of ₹12,980 crore. The pool will cover Indian-flagged or Indian-controlled vessels and vessels sailing to or from India, including through volatile maritime corridors, against all maritime risks: Hull and Machinery, Cargo, Protection and Indemnity (P&I) and War risk. Policies will be issued by member insurers using the pool's combined underwriting capacity of about ₹950 crore, and a Governing Body will oversee it. The Cabinet said Indian vessels depend heavily on the International Group of P&I Clubs (IGP&I) for third-party liability cover, and the pool is meant to improve self-reliance and resilience to sanctions.
Key facts
- Sovereign guarantee
- ₹12,980 crore
- Risks covered
- Hull and Machinery, Cargo, P&I, War risk
- Underwriting capacity
- ~₹950 crore (combined, member insurers)
- Vessels covered
- Indian-flagged/controlled, or sailing to/from India
- Reason
- High dependence on International Group of P&I Clubs (IGP&I); sanctions resilience
- Oversight
- Governing Body
Practice MCQs 3 questions
The Bharat Maritime Insurance Pool approved by the Cabinet in April 2026 is backed by a sovereign guarantee of:
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Correct answer: D — ₹12,980 crore
The BMI pool has a sovereign guarantee of ₹12,980 crore; ₹950 crore is its combined underwriting capacity.
Consider the following statements about the Bharat Maritime Insurance Pool: 1. It covers only Indian-flagged vessels and excludes foreign vessels bound for Indian ports. 2. It covers War risk in addition to Hull and Machinery, Cargo and P&I risks. Which of the statements given above is/are correct?
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Correct answer: B — 2 only
Statement 1 is wrong: the pool covers Indian-flagged or controlled vessels and also vessels destined to or starting from India. Statement 2 is correct.
The Cabinet cited high dependence of Indian vessels on which body for Protection and Indemnity (P&I) cover of third-party liabilities such as oil pollution and wreck removal?
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Correct answer: B — International Group of P&I Clubs (IGP&I)
The release says Indian vessels depend heavily on the International Group of Protection and Indemnity (IGP&I) Club for P&I insurance.