The central government has approved a maritime insurance pool worth Rs 129.8 billion (bn) to strengthen risk cover for the shipping sector. The move is intended to expand underwriting capacity for high value hull and cargo risks and to address coverage gaps that have challenged domestic carriers and exporters. Officials described the pool as a strategic instrument to stabilise insurance availability and to support logistics chains connected to international trade.

The pool aggregates capacity from public and private insurers together with reinsurance arrangements and a government backstop to enhance solvency for major claims. It provides standardised terms to reduce the need for multiple layered placements that can increase cost and complicate claims settlement. The arrangement is structured to improve access to comprehensive cover and to deliver more predictable pricing for ship operators and cargo interests.

The pool covers a range of maritime perils and offers both hull and cargo protection, supporting domestic tonnage and operators engaged in liner and bulk trades. By centralising capacity, the mechanism aims to shorten negotiation timelines for high exposure risks and to reduce reliance on multiple foreign market placements. The design seeks to strengthen the continuity of cover during periods of heightened claims activity.

Regulatory coordination and oversight are in place to finalise operational terms and governance for the pool while the government monitors its effectiveness against stated objectives. The initiative is intended to lower systemic risk within the maritime insurance market and to facilitate investment in shipping services, thereby supporting export competitiveness and supply chain resilience. Market participants and insurers will be required to comply with reporting and capital adequacy norms set by regulators.