ENA Sectors 2026-04-20 13:27:13 <p><span style="font-size:14px"><strong>New Delhi, Apr 20 (KNN)</strong> The Union Cabinet, chaired by Narendra Modi, has approved the creation of a domestic insurance mechanism, Bharat Maritime Insurance Pool (BMI Pool), backed by a sovereign guarantee of Rs 12,980 crore to ensure uninterrupted maritime insurance coverage.<br /> <br /> The move aims to provide affordable and continuous insurance for vessels carrying cargo to and from Indian ports, particularly amid rising geopolitical tensions and disruptions in global shipping routes.<br /> <br /> <strong>Ensuring continuity amid global risks</strong><br /> <br /> The government noted that increasing global volatility has raised risks for maritime trade, leading to higher insurance premiums and uncertainty in coverage availability. <br /> <br /> Indian shipping has remained heavily dependent on international insurers, particularly the International Group of Protection and Indemnity Clubs (IGP&amp;I), for protection and indemnity (P&amp;I) cover.<br /> <br /> Such covers include third-party liabilities such as oil pollution, wreck removal, cargo damage, crew injury, and collision liabilities.<br /> <br /> The BMI Pool is expected to reduce this dependence and ensure continuity of coverage, especially in scenarios where international insurers may withdraw due to sanctions or geopolitical developments.<br /> <br /> <strong>Comprehensive risk coverage</strong><br /> <br /> The proposed pool will cover a wide range of maritime risks, including hull and machinery, cargo, protection and indemnity (P&amp;I) and war risk. Policies will be issued by participating insurers using a combined underwriting capacity estimated at around Rs 950 crore.<br /> <br /> The initiative is also aimed at building domestic expertise in marine underwriting, claims management, and legal frameworks tailored to Indian shipping conditions.<br /> <br /> A governing body will be constituted to oversee the pools operations and ensure efficient functioning.<br /> <br /> Officials said the sovereign guarantee is intended to strengthen self-reliance, enhance resilience against sanctions, and provide greater sovereign control over critical maritime insurance infrastructure.<br /> <br /> <em><strong>(KNN Bureau)</strong></em></span></p> 45850 https://knnindia.co.in/news/newsdetails/sectors/centre-clears-rs-12980-cr-maritime-insurance-pool-to-ensure-shipping-coverage 2026-04-20 13:27:13 knnindia.co.in