Mandatory Indian P&I Cover Could Hurt Domestic Shipowners, Warns INSA

P&I insurance is a critical form of marine liability cover that protects shipowners against third-party risks, including cargo claims, pollution incidents, crew liabilities, and collision-related damages. Indian shipowners currently rely on internationally recognized P&I Clubs that are part of the global marine insurance framework. INSA has recommended that the Insurance Regulatory and Development Authority of India continue allowing Indian shipping companies to obtain P&I coverage from established international Clubs for at least the next decade, even after the creation of a domestic P&I entity. The association argues that a transition period is essential to ensure that any Indian P&I provider develops adequate financial strength, technical expertise, and global recognition before shipowners are required to shift coverage.

According to Devli, forcing shipowners to move away from internationally accepted P&I insurers prematurely could increase costs, create compliance challenges in overseas markets, and weaken the competitiveness of Indian-flagged vessels in global trade. The issue comes amid broader efforts to strengthen India’s maritime ecosystem and expand the country’s shipping fleet, with industry stakeholders emphasizing that regulatory changes should support, rather than hinder, the growth of domestic shipping.