GIC Re Takes Charge Of USD 1.4 Billion Maritime Insurance Pool
GIC Re has been appointed manager of the Bharat Maritime Insurance Pool backed by a USD 1.4 billion sovereign guarantee.
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General Insurance Corporation of India, also known as GIC Re, has been appointed by the Government of India as the manager of the Bharat Maritime Insurance Pool (BMIP), a sovereign-backed maritime insurance pool launched by the Union Cabinet last month.
The initiative has been introduced to ensure uninterrupted India-controlled insurance coverage for the country’s maritime trade. The pool carries a sovereign guarantee of USD 1.4 billion and is aimed at protecting Indian-flagged vessels, India-controlled ships and India-bound cargo operating across volatile maritime routes.
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India Expands Maritime Risk Cover:
Under the framework, GIC Re will operationalise three dedicated insurance solutions covering war risks in high-risk zones for cargo, hull and machinery, along with all-risk Protection and Indemnity (P&I) coverage for Indian shipowners.
Together, these offerings will provide coverage of up to USD 1.5 billion per loss.
According to the announcement, BMIP will begin operations with an initial underwriting capacity of ₹927.10 crore. GIC Re will contribute ₹400 crore, while the remaining amount will be subscribed by public and private sector insurers.
Beyond the pool’s underwriting capacity, the Government of India has also provided a sovereign guarantee backstop of USD 1.4 billion. The pool has been established for an initial period of 10 years, with an option to extend it by another five years.
With nearly 95% of India’s trade by value moving through maritime corridors, the government expects the pool to help lower insurance costs for Indian shipowners while also reducing foreign exchange outflows to overseas insurance markets.
Speaking on the development, Hitesh Rameshchandra Joshi said, “The Bharat Maritime Insurance Pool is a defining moment for India's insurance and maritime sectors. As its Manager, GIC Re is privileged to operationalise a sovereign-backed framework that secures Indian vessels and cargo against geopolitical uncertainty and global market volatility.”
He added that the initiative reflects the collective strength of India’s insurance industry and the government’s strategic vision around protecting the country’s trade infrastructure.
Built around the principles of sovereign guarantee, national collective participation and strategic autonomy, BMIP aligns with the government’s broader Atmanirbhar Bharat vision focused on self-reliance in maritime risk financing.
