New Delhi, Apr 18: The government on Saturday approved a proposal to create a domestic insurance pool, Bharat Maritime Insurance Pool (BMI pool), with a sovereign guarantee of Rs 12,980 crore to facilitate continuous maritime insurance coverage.
The pool ensures that Indian trade continues to have access to affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice versa, even when transiting volatile maritime corridors.
This was informed by Information and Broadcasting Minister Ashwini Vaishnaw while briefing about decisions taken at the Cabinet meeting chaired by Prime Minister Narendra Modi.
The government has approved the formation of ‘Bharat Maritime Insurance Pool’ for Indian flagged or controlled vessels or vessels destined to or starting from India, backed by a sovereign guarantee.
The pool would cover all maritime risks like Hull and Machinery, Cargo, P&I and War risk. The policies will be issued by insurers that are Pool members, using the combined underwriting capacity of the pool, which would be around Rs 950 crore.
