The Union Cabinet chaired by Prime Minister Narendra Modi on April 18, 2026 approved the creation of the Bharat Maritime Insurance Pool (BMI Pool) backed by a sovereign guarantee of ₹12,980 crore. The decision came against the backdrop of escalating Iran-US-Israel tensions in the Strait of Hormuz, where two Indian-flagged vessels Jag Arnav and Sanmar Herald were recently fired upon by Iranian Revolutionary Guard forces. The pool covers all four classes of maritime risk — Hull and Machinery, Cargo, Protection and Indemnity (P&I), and War Risk — and is designed to provide continuous, affordable insurance coverage for Indian-flagged or Indian-controlled vessels and for cargo originating from or destined to Indian ports, even when transiting volatile maritime corridors. Policies will be issued by Pool member insurers using a combined underwriting capacity of approximately ₹950 crore. GIC Re has been designated as the Pool administrator with a contribution of ₹400 crore, while public sector insurers will contribute ₹280 crore and the remainder will come from private insurers and oil marketing companies. The scheme aims to reduce dependence on foreign underwriters such as the International Group of Protection and Indemnity Clubs and to insulate India's maritime trade from global insurance volatility, particularly war-risk surcharges that have surged since the West Asia conflict began. Information and Broadcasting Minister Ashwini Vaishnaw briefed the press on the decision. The sovereign guarantee structure means the Government of India will backstop claims that exceed the pool's underwriting capacity, providing certainty to global reinsurers and Indian shipowners alike.