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)
Link: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2253243®=3&lang=1
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