Overview
- India’s Union Cabinet, which cleared the plan Saturday, authorized a Rs 12,980 crore sovereign guarantee for a new Bharat Maritime Insurance Pool.
- The pool will issue policies through member insurers using about Rs 950 crore of combined underwriting capacity for hull, cargo, protection and indemnity, and war-risk cover.
- Eligibility spans Indian-flagged and Indian-controlled vessels as well as ships carrying cargo to or from India, including passages through higher-risk routes like the Red Sea and the Persian Gulf.
- GIC Re will administer the pool with contributions reported from the state reinsurer and other public and private insurers, with a governing body to oversee operations over an initial 10-year term extendable by five years.
- Officials and industry expect lower premiums and steadier access to cover, though some experts warn the initial capacity may be small versus very large ship or cargo claims, highlighting the pool’s longer-term goal to build domestic underwriting and claims expertise.