India Approves Bharat Maritime Insurance Pool

The Union Cabinet of India approved the creation of the Bharat Maritime Insurance Pool on Saturday, a domestic initiative backed by a sovereign guarantee of Rs 12,980 crore to provide uninterrupted maritime insurance coverage amid escalating geopolitical tensions in key shipping routes.

The decision, announced following a cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi, addresses vulnerabilities exposed by recent conflicts in West Asia, including disruptions in the Red Sea, Strait of Hormuz, and Gulf of Oman. These areas handle a significant portion of India's crude oil imports and global trade, with international insurers raising premiums or withdrawing war-risk coverage, threatening operational continuity for Indian shipping companies and exporters.

The pool will function as a collaborative effort among Indian insurance providers, combining their resources to underwrite policies with a total capacity of approximately Rs 950 crore. Administered by the public sector General Insurance Corporation of India, it will receive contributions of around Rs 400 crore from GIC Re, Rs 280 crore from public sector general insurers, and the balance from private insurers...