New Delhi, May 13 -- India has launched the Rs.12,980-crore sovereign-backed Bharat Maritime Insurance Pool (BMIP) at a time when tensions in West Asia and sanctions-related disruptions are increasing risks to global shipping and energy trade.

The domestic insurance pool, with a total underwriting capacity of $1.5 billion and a sovereign guarantee of $1.4 billion, aims to ensure uninterrupted maritime insurance cover for Indian-linked vessels and cargo.

Mint explains:

India launched the BMIP to reduce heavy dependence on foreign insurers and reinsurers amid rising geopolitical tensions, sanctions, and war-related disruptions affecting global shipping. The immediate trigger is instability in West Asia, a region vital for India's crude o...