Bharat Maritime Insurance Pool (BMIP)

Why in News?

The Union Cabinet has approved the creation of the Bharat Maritime Insurance Pool (BMIP) to provide continuous insurance coverage.

• It is a government‑backed insurance system designed to provide risk coverage for Indian‑flagged and Indian‑controlled maritime vessels operating domestically and internationally.
• Part of India’s push for strategic self‑reliance in maritime trade under Maritime India Vision 2030.

• Coverage
  • Hull & Machinery Insurance – Protects ships against physical damage or loss.
  • Cargo Insurance – Covers goods transported between India and international ports.
  • Protection & Indemnity (P&I) – Covers third‑party liabilities.
  • War Risk Insurance – Ensures vessels can operate in conflict‑prone areas without disruption.
  • Third‑party liabilities – Oil pollution, wreck removal, cargo damage, crew injury, collision liabilities.

UNCLOS (United Nations Convention on the Law of the Sea) – The UNCLOS is the international "constitution of the oceans" that establishes the legal framework for maritime zones, navigation rights, resource management, and peaceful dispute resolution.

• Strategic Timing of India’s Launch
  • Global insurers raised premiums or withdrew coverage, leaving exporters exposed.
  • Recent disruptions in the Red Sea, Strait of Hormuz, Gulf of Oman exposed vulnerability to foreign insurers.
  • India’s maritime sector handles 70% of trade by volume and 95% by value.
  • BMIP acts as a buffer, ensuring affordable insurance even during geopolitical crises.
• Impact on Global Supply Chains
  • Conflicts increase risks of cargo loss, vessel damage, and crew safety.
  • Insurance costs spike, disrupting logistics and raising export costs.
  • Withdrawal of coverage can halt shipping operations.

References

1. India Today | BMIP
2. Indian Express | BMIP