New Delhi: The government of India has announced a major step to protect its shipping sector by providing insurance support to Indian vessels operating in risky international waters.
This decision comes at a time when tensions in key maritime regions, especially around the Strait of Hormuz, have increased concerns about the safety of ships. Global insurers have either raised premiums sharply or reduced coverage due to the growing risk of conflict, making it difficult for shipping companies to operate normally.
To address this, the government has approved a large insurance mechanism known as the Bharat Maritime Insurance Pool. Backed by a sovereign guarantee of nearly 13,000 crore rupees, the scheme aims to ensure that Indian ships continue to receive insurance coverage even in high risk zones.
Officials said the move is important to maintain smooth trade operations, as most of India’s imports and exports depend on sea routes. Without proper insurance, ships may avoid certain routes, which could affect the supply of essential goods including oil.
Under the new plan, the insurance pool will cover risks such as damage to ships, loss of cargo, and incidents linked to conflict. It will also help keep insurance costs at a manageable level for shipping companies.
The scheme is expected to run for several years and may be extended depending on global conditions. It is also seen as a step towards reducing dependence on foreign insurers and strengthening domestic capacity in the maritime sector.
The government’s move is being viewed as a timely response to global uncertainty, ensuring that Indian trade continues without major disruption despite rising geopolitical tensions.