DFS launches sovereign-backed maritime protection & indemnity cover under BMIP

New Delhi [India], July 30 (ANI): The Department of Financial Services (DFS), Ministry of Finance, has launched India's first sovereign-backed Protection & Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP).
Designed by The New India Assurance Company Limited, the official launch took place at an event in New Delhi today, chaired by Sanjay Lohiya, Secretary, DFS. During the proceedings, the Secretary handed over the initial P&I policy document issued by New India Assurance to the Shipping Corporation of India Limited.
According to the Ministry of Finance, the newly introduced product offers coverage against third-party liabilities, including crew and cargo liability, pollution liability, and wreck removal. Supported by a 24x7 port correspondent network, the policy provides an indemnity limit of up to USD 1.5 billion through the combined underwriting capacity of the pool.
Speaking on the occasion, Secretary, DFS congratulated all stakeholders involved in the process of formulation of the Protection & Indemnity (P&I) insurance product for achieving this landmark milestone for India's maritime sector.
Operationalised by the DFS on May 12, 2026, with sovereign backing, the BMIP mechanism maintains continuous war risk coverage for shipping lines while building local underwriting expertise. Official data shows that as of July 29, 2026, the pool has issued 1,608 policies covering Cargo War risks and Hull War risks.
The establishment of the pool has resulted in a 35 per cent to 40 per cent reduction in war risk premium rates compared to the peak figures recorded during the West Asia conflict.
The Ministry noted that while the BMIP mechanism ensures the continuity of maritime war risk insurance coverage, fosters the development of domestic underwriting capacity, and enhances confidence among India's shipping and trade stakeholders, extending the pool to include Protection & Indemnity (P&I) coverage would further strengthen India's maritime risk management framework and improve the resilience of its maritime insurance ecosystem.
The Ministry added that this initiative is another step towards the country's commitment to building resilient, domestic insurance capabilities and supports the broader national vision of Atmanirbhar Bharat by fostering self-reliance in specialised insurance solutions, reducing dependence on foreign markets, and ensuring that value generated from India's maritime trade remains within the domestic economy.
The event was attended by Director General of Shipping Shyam Jagannathan, senior officers from the Department of Financial Services, including Additional Secretary Shri Debasish Prusty, and CMD, General Insurance Corporation of India Hitesh Joshi, CMD, New India Assurance Company Limited, Girija Subramanian, CMD Shipping Corporation of India Limited Capt. Binesh Kumar Tyagi, Secretary General, General Insurance Council; Kasturi Sengupta, senior officers from ICCSA and INSA and Joint Secretary, Ministry of Ports, Shipping and Waterways, Venkatesapathy S. (ANI)