India has launched its first sovereign-backed maritime insurance product, under the Bharat Maritime Insurance Pool (BMIP), marking a major milestone for the country’s maritime industry.
The Department of Financial Services under the Ministry of Finance on Thursday launched the sovereign-backed Protection and Indemnity insurance product designed by the New India Assurance Company.
Financial Services Secretary Sanjay Lohia handed over the first Protection & Indemnity (P&I) insurance policy document to Shipping Corporation of India Ltd.
This insurance offers protection against 3rd party liabilities including crew and cargo liability, wreck removal, 24×7 correspondent work and pollution liability with a limit of up to USD 1.5 billion.
Since its launch, backed by a sovereign guarantee, the pool has been accepted by the market and has seen considerable success.
It also met the main goal for which it was designed, i.e to provide uninterrupted war risk insurance capacity to Indian stakeholders.
Due to this insurance product, war risk premiums have reduced by 35% to 40%, compared with the levels seen at the peak
Content Original Link:
" target="_blank">
