Amidst the increasing tension in Iran-US, the Central Government has taken a big step regarding the security of Indian maritime trade. The Union Cabinet has approved Bharat Maritime Insurance Pool of Rs 12,980 crore. This decision has been taken at a time when news of Iran firing on Indian ships near the Strait of Hormuz has come to light today, which has increased concerns about the security of sea routes.

Information given on social media
The Indian Finance Ministry has given information about this by tweeting from its official x (Twitter) handle. It is written in this post, ‘The Cabinet has approved the proposal to create ‘Bharat Maritime Insurance Pool’ (BMIP). For this, the government will give a guarantee of about Rs 12,980 crore, so that the ships continue to get insurance protection. It was further written, ‘This domestic insurance pool helps to deal with situations like increasing uncertainty in the world and tensions between countries and reduces the need for Indian ships to depend on foreign insurance companies.’

Cabinet has approved the proposal for creation of ‘Bharat Maritime Insurance Pool’ (BMIP) with a sovereign guarantee of Rs 12,980 crores to facilitate continuous maritime insurance coverages.

The Domestic Insurance Pool addresses global volatility, geopolitical instability… pic.twitter.com/xMz5kZWRKU

— Ministry of Finance (@FinMinIndia) April 18, 2026

It is further written in this post, ‘This insurance pool covers all types of risks related to sea, such as ship (hull and machinery), cargo (cargo), ship owner’s liability (P&I) and war related risks. It also provides security to those ships which are coming to India with goods from any country in the world, even if they have to pass through any sensitive or risky sea area on the way.

This decision was necessary
Under this scheme, Indian ships will get insurance cover at low premium. If any ship is damaged due to war or conflict, compensation will be given from this fund. This will reduce the risk of shipping companies and international trade will be able to continue without interruption. This decision is considered very important in view of the increasing tension in sensitive areas like Hormuz. A large part of the Indian economy depends on maritime trade, and in such a situation, taking care of the safety of ships is the most important step.