India OKs Maritime Insurance Pool

India’s cabinet has approved a Bharat Maritime Insurance Pool, a state-backed scheme to keep ships and cargoes insured as war-risk premiums surge on regional routes. (pmindia.gov.in) The approval came on April 18, 2026, with a sovereign guarantee of Rs 12,980 crore. Information and Broadcasting Minister Ashwini Vaishnaw said the pool would support continuous maritime insurance coverage for Indian trade. (business-standard.com) The government said the pool will cover Indian-flagged or Indian-controlled vessels, as well as ships headed to India or sailing from Indian ports. It is designed to cover hull and machinery, cargo, protection and indemnity liability, and war risk. (pmindia.gov.in) Marine insurance is the backstop that lets a ship sail, a cargo load move, and a port call happen without banks, charterers, and buyers freezing the deal. When conflict pushes insurers to raise rates or pull back, freight costs jump and some voyages stop making commercial sense. (business-standard.com) That pressure has intensified around West Asia and the Strait of Hormuz, a major oil and trade chokepoint. Business Standard reported that the West Asia war had driven shipping insurance costs up by nearly 1,000 per cent on some routes before the cabinet decision. (business-standard.com) India has been building out maritime finance tools for several years as it tries to keep more shipping, insurance, and shipbuilding activity onshore. In September 2025, the cabinet approved a broader Rs 69,725 crore maritime package that included financing and shipbuilding measures through 2036. (pib.gov.in) The insurance pool also builds on an earlier domestic risk-sharing model. In November 2023, Finance Minister Nirmala Sitharaman said a Marine Cargo Pool had been created with support from the Insurance Regulatory and Development Authority of India, domestic insurers, and General Insurance Corporation of India after the pandemic. (pib.gov.in) This time the state is moving beyond cargo cover to a broader wartime safety net for ships, cargo owners, and liability exposures tied to India-bound trade. The immediate aim is continuity: keep vessels moving, keep imports and exports insurable, and reduce dependence on foreign underwriters during a regional shock. (pmindia.gov.in)