Image for representation purposes only India has launched its first sovereign-backed maritime insurance product, under the Bharat Maritime Insurance Pool (BMIP), marking a major milestone for the country’s maritime industry. The Department of Financial Services under the Ministry of Finance on Thursday launched the sovereign-backed Protection and Indemnity insurance product designed by the New India Assurance Company. Financial Services Secretary Sanjay Lohia handed over the first Protection & Indemnity (P&I) insurance policy document to Shipping Corporation of India Ltd. This insurance offers protection against 3rd party liabilities including crew and cargo liability, wreck removal, 24×7 correspondent work and pollution liability with a limit of up to USD 1.5 billion. Since its launch, backed by a sovereign guarantee, the pool has been accepted by the market and has seen considerable success. It also met the main goal for which it was designed, i.e to provide uninterrupted war risk insurance capacity to Indian stakeholders. Due to this insurance product, war risk premiums have reduced by 35% to 40%, compared with the levels seen at the peak of the U.S-Iran war. As of July 20, 2026, 1,608 policies covering Cargo War risks and Hull War risks have been issued under the Pool. The BMIP mechanism makes sure that maritime war risk insurance coverage remains available, and also promotes the development of underwriting capacity in India. It has also boosted confidence among India’s shipping and trade stakeholders. Extending the pool to include Protection & Indemnity (P&I) coverage would also strengthen the country’s maritime risk management network and enhance the resilience of the maritime insurance framework. The development also supports India’s vision of Self-Reliance or Atmanirbhar Bharat by reducing dependence on foreign markets and ensuring that the value generated from India’s maritime trade remains within the domestic economy.