The government has approved a Bharat Maritime Insurance Pool with a sovereign guarantee fund of Rs 12,980 crore to support maritime insurance amid disruptions caused by the Middle East conflict, Union minister Ashwini Vaishnaw announced on Saturday.The scheme aims to address rising insurance premiums and tighter approvals for shipping cover, which are currently being granted on a case-to-case basis.The pool will cover major maritime risks including hull and machinery, cargo, protection and indemnity (P&I), and war risks.Coverage will apply to India-flagged vessels, India-controlled ships, and vessels with India as the origin or destination.The proposed framework will run for 10 years, with provision for extension up to 15 years.The proposed Bharat Maritime Insurance Pool is expected to ensure uninterrupted insurance coverage for Indian shipping while reducing dependence on foreign insurers. According to details presented by the government, the mechanism will also help facilitate reciprocal insurance coverage from other non-IG clubs. Another stated benefit is lower foreign exchange outgo through reduced spending on overseas insurance premiums.
