Bharat Maritime Insurance Pool launches sovereign-backed P&I cover
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The Department of Financial Services launched India’s first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool on 30 July 2026. Designed by New India Assurance, it covers third-party liabilities up to USD 1.5 billion. Since May, BMIP has issued 1608 war risk policies and cut premiums by about 35 to 40 per cent.
- Launched
- 30 Jul 2026, Department of Financial Services
- Product
- Protection and Indemnity (P&I) insurance, designed by New India Assurance
- Cover limit
- up to USD 1.5 billion, through the pool’s combined capacity
- First policy
- issued to Shipping Corporation of India
- BMIP since
- 12 May 2026, backed by a sovereign guarantee
- War risk policies
- 1608 for cargo and hull, as on 29 July 2026
P&I cover under the Bharat Maritime Insurance Pool: what happened?
Ships need two kinds of cover: for the ship and cargo, and for liabilities to others, such as crew injury, oil pollution or wreck removal. That second kind is P&I insurance. The government wants less dependence on foreign markets for it. BMIP first gave war risk cover during the West Asia conflict; now it adds P&I.
- P&I cover includes crew and cargo liability, pollution liability and wreck removal.
- It comes with a 24×7 port correspondent network.
- War risk premium rates fell about 35 to 40 per cent from the peak of the West Asia conflict.
- The aim is domestic underwriting capacity and less dependence on foreign markets.
What is BMIP?
- The Bharat Maritime Insurance Pool, operationalised by DFS on 12 May 2026 with a sovereign guarantee.
- Its first goal was uninterrupted war risk insurance for Indian shipping and trade.
Why does P&I cover under the Bharat Maritime Insurance Pool matter?
- Maritime security: Keeps Indian ships insured during conflicts.
- Atmanirbhar Bharat: Keeps insurance value from maritime trade at home.
What can Prelims ask on P&I cover under the Bharat Maritime Insurance Pool?
- BMIP: operationalised 12 May 2026; sovereign guarantee.
- P&I product: New India Assurance; up to USD 1.5 billion.
- 1608 war risk policies by 29 July 2026.
How to use this in Mains
- As per PIB (2026-07-30): DFS launched India's first sovereign-backed Protection & Indemnity product under BMIP, designed by New India Assurance.
- Reduces dependence on Western insurers for Indian shipping.
Quotable data pointWar-risk premiums fell ~35–40% from the West Asia conflict peak; 1,608 cargo/hull war-risk policies issued by 29 Jul.
PIB: Finance: BMIP P&I insurance, 30 Jul 2026
Exam angle
Prelims: P&I insurance.
Practice MCQs
Original practice questions (not PYQs).
Protection and Indemnity (P&I) insurance for ships mainly covers
Answer (b) & explanation
PIB (Finance), 30 Jul 2026.
Questions students ask about this
What is P&I insurance?
Protection and Indemnity insurance covers a shipowner's liabilities to third parties, such as crew and cargo claims, pollution and wreck removal.
Who designed India's P&I product?
New India Assurance Company Limited, under the Bharat Maritime Insurance Pool.
How has BMIP affected premiums?
War risk premium rates fell about 35 to 40 per cent from the levels at the height of the West Asia conflict.
Keep studying
Go deeper
Official source: PIB: Finance: BMIP P&I insurance, 30 Jul 2026
facts from cited sources only; faculty review pending