While the Centre is likely to create a $1.5 billion-fund, other insurance companies will contribute around $300-500 million to the reinsurance funds. The idea is to encourage insurance companies to extend coverage to the Indian vessels sailing in the war-struck waters," said the sources. They mentioned that the funds could minimise India’s dependence on overseas reinsurance and at the same time the Indian insurance companies will get some confidence to continue providing coverage. Due to the ongoing West Asia crisis, the insurance premiums for the vessels have gone up considerably and with this reinsurance fund, the government aims to support the insurance companies and the freighters to manage the rising cost. Some reports suggest that maritime insurance premiums for war risk in the Gulf have surged, in some cases exceeding 1000% of previous rates, as insurers reevaluate risks in the Strait of Hormuz.

Source: Indian Express April 08, 2026 01:42 UTC