DFS Launches India’s First Sovereign P&I Insurance Under BMI Pool
BMI Pool: DFS has launched India’s first sovereign-backed Protection & Indemnity insurance product under BMIP, with New India Assurance issuing the first policy to Shipping Corporation of India, offering cover of up to USD 1.5 billion.
BMI Pool: DFS has extended the Bharat Maritime Insurance Pool (BMIP) beyond war risk cover to include Protection & Indemnity insurance — covering crew, cargo, pollution liability
New Delhi-BMI Pool: The Department of Financial Services (DFS), Ministry of Finance, on Thursday launched India’s first sovereign-backed Protection & Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP). The launch event was held in New Delhi and chaired by Sanjay Lohiya, Secretary, DFS.
The P&I product has been designed by The New India Assurance Company Limited. During the event, Lohiya handed over the first P&I policy document issued under BMIP to the Shipping Corporation of India Limited.
BMI Pool: Coverage Details
According to the Ministry of Finance, the product offers coverage against third-party liabilities, including crew and cargo liability, pollution liability, and wreck removal. The policy is supported by a 24×7 port correspondent network and carries an indemnity limit of up to USD 1.5 billion, drawn from the combined underwriting capacity of the pool.
BMI Pool: Ministry’s Statement on the Expansion
The Ministry stated that while the BMIP mechanism has ensured continuity of maritime war risk insurance coverage, fostered the development of domestic underwriting capacity, and enhanced confidence among India’s shipping and trade stakeholders, extending the pool to include P&I coverage would further strengthen India’s maritime risk management framework and improve the resilience of its maritime insurance ecosystem.
The Ministry added that the initiative is another step toward building resilient, domestic insurance capabilities, supporting the broader national vision of Atmanirbhar Bharat by fostering self-reliance in specialised insurance solutions, reducing dependence on foreign markets, and ensuring that value generated from India’s maritime trade remains within the domestic economy.
The event was attended by Director General of Shipping Shyam Jagannathan, along with senior officers from the Department of Financial Services.
BMI Pool: Background on BMIP
BMIP has been operational since May 12, 2026, under a sovereign guarantee of Rs 12,980 crore (approximately USD 1.4 billion). It was established to ensure uninterrupted availability of maritime war-risk insurance for Indian shipping stakeholders amid geopolitical uncertainty, including tensions in the Middle East. The pool covers Hull and Machinery, Cargo, P&I, and War risks for Indian-flagged or India-linked vessels.
At its inauguration, the DFS Secretary handed over the first Marine Hull & Machinery War Policy issued under the pool to M/s Hoger Offshore and Marine Private Limited, providing cover against war perils while operating in high-risk war zones. A Marine Cargo War Policy was also issued to Vedanta Sterlite Copper Ltd for its import of cable wires, and a policy was issued to Balrampur Chini Mills Limited. The event was attended by senior officials including Special Secretary Sanjay Lohiya, Additional Secretary Debasish Prusty, CMD of General Insurance Corporation of India Hitesh Joshi, CMD of New India Assurance Company Limited Girija Subramanian, and Secretary General of the General Insurance Council Kasturi Sengupta.
BMI Pool: Premiums Down, Policy Count Rising
Since its launch, the Ministry of Finance has said war risk premium rates have decreased by approximately 35–40 percent from levels observed at the height of the West Asia conflict. As of the P&I launch date, a total of 1,608 policies covering Cargo War risk and Hull War risk had been issued under the pool.
With the addition of P&I cover, BMIP now extends its scope beyond war-risk insurance to address a wider set of maritime liabilities, including one previously met largely through membership of International Group P&I Clubs.
Prior to the establishment of BMIP, Indian shipping companies and vessel operators relied heavily on international reinsurance markets and foreign P&I Clubs for coverage against third-party maritime liabilities. This dependence had, at various points, exposed Indian stakeholders to premium volatility and, in certain high-risk trade corridors, to withdrawal of cover by foreign insurers amid sanctions or geopolitical tensions.
The Ministry has positioned BMIP as a mechanism to address these gaps by pooling domestic underwriting capacity backed by a sovereign guarantee. Officials have indicated that additional categories of maritime cover could be considered for inclusion under the pool as the mechanism matures, based on the requirements of Indian shipping and trade stakeholders and developments in the broader maritime insurance market. No specific timeline for further expansion has been announced.
