India to set up its first marine insurance group

The Centre has begun consultations to set up India’s first protection and indemnity (P&I) entity—to be called India Club—that will provide third-party insurance to Indian ships operating in the country’s coastal region and inland waterways, said shipping secretary T.K. Ramachandran.

- Subhash Narayan

The plan is to get domestic companies to provide insurance cover to Indian ships, which now depend on global clubs for securing ships and cargoes, the secretary said in an interview.

The need for an India-focused P&I entity has also been felt to reduce the country's vulnerability to international sanctions and pressures where insurance coverage is denied to shipping lines operating between countries facing sanctions.

At present, third-party risks in the shipping sector are insured with the International Group of P&I Clubs, a 13-member group based in London that provides liability cover to over 90% of shipping lines globally.

Apart from fleet owners, the government may also contribute some seed money into the new P&I entity to help it get the necessary capital to start underwriting insurance.