India has introduced its first sovereign-backed protection and indemnity (P&I) insurance scheme, providing up to $1.5 billion in liability coverage for the domestic maritime sector.
The initiative, launched under the Bharat Maritime Insurance Pool (BMIP), marks a significant expansion of the country's domestic insurance capacity and aligns with the government's broader Atmanirbhar Bharat (self-reliant India) strategy.
This development follows the successful rollout of BMIP's war-risk insurance product, which has already helped lower premiums by 35-40% for participating vessels.
The move comes as global shipping faces continued volatility from geopolitical tensions affecting key trade corridors.
By offering state-backed liability cover, the scheme aims to reduce the financial exposure of Indian shipowners and operators, who have historically relied on foreign P&I clubs.
The BMIP framework is designed to provide a more stable and cost-effective alternative to international markets, particularly during periods of heightened risk.
This development follows the successful rollout of BMIP's war-risk insurance product, which has already helped lower premiums by 35-40% for participating vessels.