The Union Cabinet chaired by the
Prime Minister Shri Narendra Modi today has approved the proposal for creation
of a domestic insurance pool, namely ‘Bharat Maritime Insurance Pool’ (BMI
pool) with a sovereign guarantee of Rs.12,980 crores to facilitate continuous
maritime insurance coverages. The pool ensures that Indian trade continues to
have access to affordable insurance for vessels carrying cargo from any
international origin to Indian ports and vice-versa, even when transiting
volatile maritime corridors.
This will be for Indian flagged or controlled vessels or vessels destined to or
starting from India, backed by a sovereign guarantee. The pool would cover all
maritime risks like Hull and Machinery, Cargo, P&I and War risk and is
supported by a Rs 12,980 crore sovereign guarantee.
OUR VIEW:
As global trade uncertainty persists amidst regular wars seen over last few
years - and more recently in the Gulf area, the maritime sector, especially,
has taken a blow in the Gulf war. Threats of delays in shipments and damages to
cargo and crew members have increased, resulting in high Insurance costs, as
the war keeps escalating with no signs of de-escalation.
As India continues its diplomatic efforts to ensure that its own interests are
not hampered, risks remain at high levels.
To counter such threats from external forces, the Indian Government has
initiated steps to create a domestic Insurance pool, ensuring the marine sector
remains stable and self-reliant even during Emergencies. As risks of global
uncertainties persist, the decision by Indian Government will ensure Indian
marines remain protected from geopolitical instability and global sanctions, as
India will now, no longer depend on global insurers.
The move once again demonstrates that India does not buckle under pressure even
during Emergencies, and these are signs of "Atmanirbhar Bharat"
(Self-Reliant India)
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Link: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2253243®=3&lang=1
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