India Launches Sovereign-Backed Protection & Indemnity (P&I) Marine Insurance
Government Schemes & Economy · Friday, 31 July 2026
The Ministry of Finance launched India's first sovereign-backed Protection & Indemnity (P&I) marine insurance product under the Bharat Maritime Insurance Pool (BMIP). Designed by New India Assurance, it provides up to USD 1.5 billion in cover for third-party liabilities like oil spills and wreck removal.
Quick highlights
First sovereign-backed P&I marine liability product in India.
Underwritten by New India Assurance under the Bharat Maritime Insurance Pool (BMIP).
Offers combined indemnity cover up to
.5 billion backed by a government guarantee.
Covers oil spills, wreck removal, crew injury, and cargo liabilities.
Context
The Department of Financial Services (DFS) launched domestic P&I insurance to build self-reliant marine risk management capabilities for Indian shipowners and charterers.
Key Facts
Supported by a 24x7 global port correspondent network for emergency response and legal assistance. Domestic war-risk premiums have dropped by 35–40% since BMIP's operationalization.
Significance
Retains insurance capital domestically, insulates Indian commerce against foreign sanctions, and lowers shipping logistics costs.
Challenges / Way Forward
Expanding international acceptance of Indian P&I certification across foreign ports and scaling reinsurance pool capital reserves.
Exam Angle
Important for GS Paper 3 (Infrastructure - Shipping & Logistics, Mobilization of Resources, Self-Reliance).
Remember this
Nodal Ministry: Ministry of Finance (Department of Financial Services).
Underwriter: The New India Assurance Company Limited.
Operating Framework: Bharat Maritime Insurance Pool (BMIP).