The Department of Financial Services (DFS) has launched India’s first sovereign-backed Protection and Indemnity insurance product under Bharat Maritime Insurance Pool (BMIP). Addressing the launch event in New Delhi today, DFS Secretary Sanjay Lohiya congratulated all stakeholders involved in the process of formulation of the insurance product for achieving this milestone for India’s maritime sector. He also handed over the first Protection and Indemnity policy document to Shipping Corporation of India Limited.
The Ministry of Finance said with the introduction of BMIP, the war risk premium rates have decreased approximately by 35-40 percent, from the levels observed at the height of West Asia conflict. It added that as of yesterday a total of 1 thousand 608 policies covering Cargo War risks and Hull War risks have been issued under the Pool. The Ministry noted that the BMIP mechanism ensures the continuity of maritime war risk insurance coverage, fosters the development of domestic underwriting capacity, and enhances confidence among India’s shipping and trade stakeholders. It added that extending the pool to include Protection and Indemnity coverage would further strengthen India’s maritime risk management framework and improve the resilience of its maritime insurance ecosystem.
