In response to disruptions in global shipping due to the West Asia conflict, the Union Cabinet has approved the Bharat Maritime Insurance Pool (BMI Pool). This initiative ensures uninterrupted insurance coverage for maritime operations involving India.
What is Bharat Maritime Insurance Pool?
The Bharat Maritime Insurance Pool is a government-backed insurance mechanism designed to provide coverage for various maritime risks. It aims to reduce dependence on foreign insurers and strengthen India’s shipping resilience.
Key Features of the Scheme
- Sovereign Guarantee: Backed by a government guarantee of ₹12,980 crore
- Duration
- Initial period: 10 years
- Extendable by 5 more years
- Management
- Managed by GIC Re
- Supervised by a Governing Body
Why Was This Scheme Introduced?
- Disruptions in global shipping routes due to West Asia geopolitical tensions
- Rising war risk premiums in maritime insurance
- Need to ensure continuous insurance availability for Indian shipping
- Reduce reliance on foreign insurance providers
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