NEW DELHI: Government on Tuesday launched the $1.5-billion Bharat Maritime Insurance Pool, backed by a $1.4-billion sovereign guarantee (Rs 12,980 crore), to provide risk cover for Indian vessels on international routes, including war zones. The move is expected to lower shipping insurance premiums and ensure coverage even when global insurers pull out due to escalating risks. The pool was approved by the Cabinet last month after reinsurance premiums skyrocketed in the wake of the West Asia conflict.”For claims up to $100 million, the pool will service the claim using its own capacity, and beyond that, sovereign guarantee will be invoked as a last-resort backstop to pay claims,” financial services secretary M Nagaraju said.The pool covers all vessels flagged in or controlled by India, and those bound for and starting from here carrying Indian cargo. It covers all maritime risks like hull and machinery, cargo, protection and indemnity and war risk.
