Key Highlights of Bharat Maritime Insurance Pool
Background and Context
- Creation: Union Cabinet approved the creation of a domestic maritime insurance pool
- Sovereign Guarantee: Rs 12,980 crore
- Objective: Reduce dependence on foreign insurers, ensure continuity of maritime trade, enhance sanctions resilience
Coverage Provided
The BMI Pool provides comprehensive risk coverage including:
- Hull and Machinery: Damage to vessel and its equipment
- Cargo: Loss or damage to goods being transported
- War Risk: Coverage for war-related losses
- Protection and Indemnity (P&I): Third-party liabilities including:
- Oil pollution
- Wreck removal
- Cargo damage
- Crew injury
Vessel Applicability
- Indian flagged or controlled vessels
- Vessels carrying cargo from international origins to Indian ports and vice-versa
- Vessels transiting through volatile maritime corridors
Operational Capacity
- Combined underwriting capacity: Rs. 950 crore
- Policies issued by member insurers of the pool
Governance Structure
- Newly constituted Governing Body will oversee the pool
- Aims to develop specialized marine underwriting, claims management, and legal expertise locally
Significance for India
- Economic Security: Reduces dependence on foreign insurers in a sector handling 70% of India's trade by volume and 95% by value
- Atmanirbhar Bharat: Aligns with self-reliance vision by developing domestic expertise
- Sanctions Resilience: Provides sovereign control during geopolitical instability
- Global Best Practices: Follows models from UK, Japan, and South Korea
International Comparison
Many developed countries have similar maritime insurance pools:
- United Kingdom
- Japan
- South Korea
These countries provide government-backed support to ensure continuous maritime trade operations.