Talks on setting up a domestic P&I entity have begun, senior officials of the Ministry of Ports, Shipping and Waterways (MoPSW) have said.
The officials told Hindu Business Line that over the next few months, there will be more clarity on the proposed club.
India currently has no such entity and Indian shipowners have to approach the International Group of P&I Clubs for coverage.
Provisionally called India Club, the insurance entity will first focus on covering domestic shipping in the country’s coastal regions and inland waterways. Coverage for shipping in international waters may be extended later.
“Considering the large coverage required for ships moving on international routes, we are looking to have this P&I cater to coastal shipping and inland waterways for a start,” Mr TK Ramachandran, a MoPSW secretary, said.
He said, “The details and modalities of this entity are still being worked out, but the ministry is ready to provide any seed money required for the initiative.”
Local insurance entities such as New India Assurance and GIC Re will be drawn in to form the club.
Currently, third-party marine risks are insured with the International Group of P&I Clubs, a 13-member group based in London that provides liability cover to more than 90% of shipping lines globally.
In October 2023, Finance Minister Nirmala Sitharaman called for the establishment of a domestic P&I entity to offer insurance to shipowners, aiming to bolster India’s resilience against international sanctions and enhance Indian shipping operations.
