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News: The Department of Financial Services (DFS) has launched India’s first sovereign-backed Protection and Indemnity insurance product under Bharat Maritime Insurance Pool (BMIP).
About India’s First Protection and Indemnity (P&I) Insurance Product
- India’s first sovereign-backed Protection & Indemnity (P&I) insurance product has been launched to provide domestic P&I cover for Indian ships and vessels connected with Indian trade.
- It is launched under the Bharat Maritime Insurance Pool (BMIP).
- Launched by: Department of Financial Services (DFS), Ministry of Finance
- It is designed by the New India Assurance Company Limited.
- It is third-party liability insurance for shipowners.
- Unlike Hull & Machinery Insurance, which covers damage to the ship itself, P&I insurance covers the shipowner’s legal liabilities to third parties.
- It covers liabilities such as –
- Injury, illness or death of crew, passengers and others.
- Collision liabilities.
- Oil pollution and environmental damage.
- Wreck removal.
- Cargo-related liabilities.
- Legal expenses arising from maritime claims.
About Bharat Maritime Insurance Pool (BMIP)
- The Bharat Maritime Insurance Pool (BMIP) is India’s first sovereign-backed domestic maritime insurance pool with a sovereign guarantee of Rs.12,980 crores.
- Nodal Ministry: It was launched by the Ministry of Ports, Shipping and Waterways (MoPSW).
- Aim: It aims to strengthen India’s maritime insurance ecosystem and reduce dependence on foreign insurers and Protection & Indemnity (P&I) Clubs.
- It seeks to enhance the resilience of India’s shipping sector, particularly during geopolitical conflicts, sanctions, or disruptions in the global insurance market.
- Features
- 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.
- The Pool will help to manage liability insurance locally, tailored to Indian Shipping conditions and regulatory requirements, develop specialized Marine underwriting, claims management and legal expertise within India.
