India to Provide Insurance Cover for All Vessels Linked to Domestic Trade, Says DFS Secretary M Nagaraju

India will provide insurance coverage for vessels travelling to and from the country under the newly launched Bharat maritime insurance pool, according to Department of Financial Services (DFS) Secretary M Nagaraju. 

Bharat Maritime Insurance Pool Launched to Support Shipping Sector

The Government of India recently launched the Bharat maritime insurance pool to provide domestic insurance support for maritime trade and shipping operations.

According to DFS Secretary M Nagaraju, the initiative is intended to address gaps in India’s marine insurance framework, which has traditionally relied heavily on overseas insurers and underwriters.

The government had approved the creation of the domestic maritime insurance pool last month with a sovereign guarantee of $1.5 billion.

Insurance Cover to Include High-risk Regions

The move comes at a time when shipping operations through the Strait of Hormuz have been affected by rising geopolitical tensions and higher war risk premiums imposed by international insurers.

Increased insurance costs and disruptions in vessel movement have contributed to higher logistics expenses and pressure on global trade flows.

First Policies Issued Under the New Framework

Three companies have become the initial beneficiaries under the Bharat maritime insurance pool framework.

A Marine Hull & Machinery War Policy was issued to Hoger Offshore and Marine Private Limited by The New India Assurance Company Limited. The policy provides protection against war-related risks for vessels operating in high-risk maritime zones.

Additionally, a Marine Cargo War Policy was issued to Vedanta Sterlite Copper covering imports of cable wires. Another insurance policy was provided to Balrampur Chini Mills Limited.

Iran Crisis Impacts Global Shipping and Insurance Costs

Global maritime trade has been affected by disruptions arising from the Iran crisis, particularly around the Strait of Hormuz, a key global shipping corridor.

Insurers and underwriters have increased war risk premiums for vessels operating in the region, resulting in higher operating costs for shipping companies. These additional costs are often passed on through freight charges and commodity pricing.

Maritime Insurance Seen as Strategic Support for Trade

The Bharat maritime insurance pool is expected to support Indian shipping companies, exporters and importers by improving access to domestic marine insurance coverage.

The initiative may also help strengthen India’s maritime infrastructure ecosystem and provide greater stability for trade operations during periods of global uncertainty.

Read More: IEA Warns Global Oil Supply May Fall Below Demand in 2026 Amid Iran Conflict Disruptions.

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Conclusion

India’s decision to provide insurance coverage for vessels linked to domestic trade routes marks a step towards strengthening the country’s maritime insurance capabilities. 

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