New Delhi, April 18 -- In a major policy intervention by the PM Modi-led government, the Union Cabinet has approved the creation of a domestic maritime insurance pool with a sovereign guarantee of Rs 12,980 crore.

This is aimed at insulating India's maritime trade from global volatility. The move is expected to significantly reduce dependence on foreign underwriters and ensure uninterrupted risk coverage for Indian shipping.

The proposed 'Bharat Maritime Insurance Pool' (BMI Pool) will provide comprehensive coverage across key segments, hull and machinery, cargo, protection and indemnity (P&I), and war risk for Indian-flagged and Indian-controlled vessels, including those operating in conflict-prone international waters.

This is an imp...