Bharat Maritime Insurance Pool launched

Metro India News | Hyderabad 

India has nearly 1,500 merchant vessels, ranking 16th in maritime trade volumes and 3rd in ship recycling globally. Around 95% of the country’s trade by volume and 70% by value moves through maritime transport, making shipping the backbone of foreign trade. Key commodities include crude oil, petroleum products, iron ore, coal, and fertilizers.

However, the recent war severely disrupted this sector. War Risk Insurance premiums surged sharply from 0.25% to 7.5% of a ship’s value per voyage, with quotes valid for just 24 hours. Insurance coverage was suspended for several days, halting vessel movement and trade. This led to massive economic losses estimated at Rs. 2.5 trillion. Oil costs rose by Rs. 1 trillion, stock markets saw losses of Rs. 40 trillion, and foreign investment outflows touched Rs. 1 trillion. Additionally, exports of perishable food and agricultural products worth about Rs. 1 trillion were affected due to lack of vessel movement. Overall, India’s total economic loss due to the war is estimated between Rs. 50 to 55 lakh crores, nearly equal to the Union Budget.

To address such risks, the Government of India on April 18, 2026, announced the creation of the Bharat Maritime Insurance Pool. The pool will provide insurance support for hull and machinery, cargo, protection and indemnity, and war risks. It will cover Indian-flagged vessels, Indian-controlled ships, and vessels operating to and from India. The scheme will run for 10 years, extendable by five more.

The pool will have a corpus of Rs. 12,980 crores, funded by ship owners and oil companies, with partial backing from General Insurance Corporation of India. It will begin with an underwriting capacity of Rs. 950 crores and carry a sovereign guarantee up to Rs. 12,980 crores.

Modeled partly on the UK’s Pool Re, the Indian pool differs as it is not a cash reserve but a sovereign guarantee, usable only after exhausting pool funds. Managed by GIC Re, it aims to cut war-related insurance costs by 25%, though experts note its limited capacity may not fully cover large-scale war risks.

-Dr. Kishore Nuthalapati — Economist & Corporate Finance Professional; Regional Director (PRMIA–Hyderabad Chapter); CFO, BEKEM Infra Projects Pvt Ltd.