The government on Saturday approved a Rs 12,980-crore sovereign-backed insurance cover for Indian vessels, creating a domestic pool to ensure uninterrupted protection against maritime risks and secure India’s shipping lifelines.The scheme — ‘Bharat Maritime Insurance Pool’ (BMI Pool) — will provide insurance cover to Indian-flagged ships and cargo moving to and from Indian ports, even while passing through high-risk and conflict-prone regions.Approved at a Cabinet meeting chaired by Prime Minister Narendra Modi, the initiative comes amid rising global tensions that have driven up insurance costs and created uncertainty over the availability of cover from foreign insurers.At present, Indian shipping depends heavily on overseas players such as the International Group of Protection and Indemnity Clubs for Protection and Indemnity (P&I) insurance, which covers liabilities like oil spills, cargo damage, crew injury, collision and wreck removal.Officials said such dependence leaves Indian trade exposed, particularly during geopolitical crises when global insurers may pull back or impose restrictions. The new pool is designed to plug this gap by offering a reliable, domestically controlled insurance framework.The BMI Pool will cover a wide range of risks, including Hull and Machinery, Cargo, P&I and War Risk. It will apply to Indian-flagged or controlled vessels as well as ships carrying cargo between India and international ports.Policies will be issued by member insurers with a combined underwriting capacity of around Rs 950 crore.The sovereign guarantee is expected to provide financial backing and stability, especially in extreme scenarios involving large-scale losses.Officials said the move is part of a broader push to reduce external dependence and build resilience in critical sectors, ensuring that India’s trade flows remain protected even during global disruptions.A governing body will oversee the pool’s operations, including underwriting and claims settlement, while also helping develop domestic expertise in marine insurance and risk management.