Overview
- The Bharat Maritime Insurance Pool, launched Tuesday, offers war-risk, hull, cargo and protection-and-indemnity cover for Indian-flagged or controlled ships and voyages to or from India.
- Under its claims design, the pool pays losses up to $100 million from its own capacity, with a $1.4 billion sovereign guarantee standing behind larger payouts once reserves and reinsurance are used.
- GIC Re will administer the pool, and a new governing body and underwriting committee will oversee operations and enforce underwriting discipline.
- At the launch, New India Assurance issued the first policies, including a hull-and-machinery war cover to Hoger Offshore and cargo war covers to Vedanta Sterlite Copper and Balrampur Chini Mills.
- Domestic insurers in the pool will issue policies using shared capacity, which members then reinsure in proportion to their commitments, a setup meant to reduce reliance on foreign insurers and keep vital cargo like fuel and fertilizers moving; P&I cover here addresses third-party costs such as oil spills and crew injury.