India launches $1.5 bn maritime insurance pool

India launches $1.5 billion maritime insurance pool, issues first covers

Synopsis

India has launched its significant Bharat Maritime Insurance Pool. The initiative aims to bolster domestic maritime trade by reducing dependence on foreign insurers. The pool offers a substantial sovereign guarantee, ensuring continuous insurance coverage for vessels. This move provides crucial assurance for India’s growing maritime sector. The first insurance covers have now been issued to key entities.

New Delhi: India on Tuesday issued the first insurance covers under its $1.5-billion Bharat Maritime Insurance (BMI) Pool to three entities – Vedanta Sterlite Copper Ltd, Balrampur Chini Mills Ltd and Hoger Offshore and Marine Pvt Ltd.

Launching the pool, Financial services secretary M Nagaraju said it would bridge a key gap in India’s maritime trade, which has so far relied heavily on foreign insurers. The pool offers a sovereign guarantee of $1.4 billion to support uninterrupted maritime insurance coverage.

“We will insure vessels coming to India or going from India to any part of the world; that includes West Asia,” he said, adding that it was not aimed at profiteering from but at providing assurance to India’s maritime trade.

In April, the Union cabinet approved the setting up of the BMI Pool to cover a wide range of maritime risks.