The Union Cabinet of India, led by Prime Minister Narendra Modi, has approved the establishment of the Bharat Maritime Insurance Pool (BMI), a sovereign guarantee-backed insurance initiative worth ₹12,980 crore (approximately $1.56 billion USD). This decision comes in response to rising underwriting costs linked to the ongoing conflict in West Asia, which has led global reinsurers to increase premiums and limit coverage options. The BMI aims to ease insurance conditions for Indian merchant shippers, who rely heavily on maritime trade, with nearly 95% of trade by volume conducted via sea. The insurance pool will specifically cover war-risk insurance for vessels operating in high-risk maritime corridors, particularly those transporting oil and gas from the Persian Gulf. The pool will be available for 10 years, with a possible extension of five years, and will cover India-flagged vessels as well as those originating from or destined to India. Shipping Minister Sarbananda Sonowal emphasized that this initiative will enhance India's capacity to protect its maritime trade amidst global uncertainties.