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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