In a landmark move for India’s maritime sector, the Indian government is setting up its first Protection and Indemnity (P&I) insurance entity, named India Club. This initiative marks a significant step toward strengthening the country’s maritime self-reliance and reducing dependence on foreign insurance providers.
What is India Club?
India Club will serve as a domestic third-party liability insurer for ships operating in India’s coastal waters and inland waterways. The plan was disclosed by Shipping Secretary T.K. Ramachandran, who emphasized the urgent need for an Indian insurer that can support fleet owners navigating regulatory complexities and geopolitical constraints.
Key Highlights:
- First Indian P&I Club: India Club will be the first indigenous insurer for maritime third-party risks in the country.
- Reducing global dependency: Currently, Indian ships rely on the London-based International Group of P&I Clubs, which insures over 90% of global shipping lines — many of which are subject to political pressures and sanctions.
- Geopolitical security: India Club will insulate domestic shipping from global sanction risks that could restrict movement between politically sensitive regions.
- Funding model under review: The government is considering initial capital support from fleet owners and public sector insurance companies.
- Consultants onboard: A tender has been issued to onboard experts who will help define the operational and financial roadmap for India Club.
- Awaiting Cabinet approval: Once the plan is finalized post-consultation, it will be submitted to the Union Cabinet for final approval.
Why This Matters
The creation of India Club is not just an insurance play — it’s a strategic move to enhance maritime sovereignty, protect domestic fleet operators, and make India more resilient in global trade logistics.
Stay tuned for updates as this transformative initiative navigates through its next stages.