Govt rolls out $1.5 billion maritime insurance pool

The pool will enable India to strengthen sovereign control over maritime trade

- Rajeev Jayaswal

BMIP will have a sovereign guarantee of $1.4 billion.

(REUTERS)

The government on Tuesday launched a $1.5 billion Bharat Maritime Insurance Pool (BMIP) with a sovereign guarantee of $1.4 billion to facilitate continuous maritime insurance coverage amid the war in West Asia, Union finance ministry said in a statement.

The pool covers all maritime risks such as hull and machinery, cargo and war risks for Indian flagged or controlled vessels or vessels destined to or starting from India, in the context of the current tensions in the West Asia, it said.

Under BMIP, the New India Assurance Co Ltd on Tuesday issued the first policy providing financial protection against war perils while navigating through high-risk war zones, it said.