India's P&I Club Plan Faces Hurdles, Losing Momentum
PORTS & SHIPPING

India's P&I Club Plan Faces Hurdles, Losing Momentum

India's ambitious plan to establish a locally owned Protection and Indemnity (P&I) Club is encountering significant challenges, leading to a slowdown in its progress. The initiative, aimed at providing Indian shipowners with local insurance solutions and reducing dependency on foreign clubs, has been hampered by various obstacles.

The primary goal of the proposed P&I Club is to offer comprehensive marine insurance coverage, including liability for shipowners against risks such as pollution, wreck removal, and third-party damages. This move was expected to enhance the country's maritime sector's self-reliance and reduce foreign exchange outflow.

However, several factors have contributed to the initiative losing steam. One major hurdle is the lack of sufficient domestic expertise and experience in managing such specialized insurance operations. The complex nature of P&I insurance, which involves high-value claims and extensive legal and technical knowledge, has made it challenging to develop a robust framework locally.

Additionally, the financial backing required to establish and sustain a P&I Club is substantial. Ensuring adequate capitalization and reinsurance support to cover large claims is crucial, but securing these resources has proven difficult. Potential investors and stakeholders remain cautious, given the high risks associated with the maritime insurance industry.

Regulatory and bureaucratic hurdles have also played a role in slowing down the project's progress. Navigating through the intricate regulatory landscape and obtaining necessary approvals has been time-consuming, adding to the delays.

The Indian government and maritime industry stakeholders continue to explore solutions to overcome these challenges. Collaborations with established international P&I Clubs, capacity-building initiatives, and policy reforms are being considered to revive the project. Despite the setbacks, there remains optimism that with concerted efforts, the vision of a locally owned P&I Club can still be realised, bolstering India's maritime sector in the long run.

India's ambitious plan to establish a locally owned Protection and Indemnity (P&I) Club is encountering significant challenges, leading to a slowdown in its progress. The initiative, aimed at providing Indian shipowners with local insurance solutions and reducing dependency on foreign clubs, has been hampered by various obstacles. The primary goal of the proposed P&I Club is to offer comprehensive marine insurance coverage, including liability for shipowners against risks such as pollution, wreck removal, and third-party damages. This move was expected to enhance the country's maritime sector's self-reliance and reduce foreign exchange outflow. However, several factors have contributed to the initiative losing steam. One major hurdle is the lack of sufficient domestic expertise and experience in managing such specialized insurance operations. The complex nature of P&I insurance, which involves high-value claims and extensive legal and technical knowledge, has made it challenging to develop a robust framework locally. Additionally, the financial backing required to establish and sustain a P&I Club is substantial. Ensuring adequate capitalization and reinsurance support to cover large claims is crucial, but securing these resources has proven difficult. Potential investors and stakeholders remain cautious, given the high risks associated with the maritime insurance industry. Regulatory and bureaucratic hurdles have also played a role in slowing down the project's progress. Navigating through the intricate regulatory landscape and obtaining necessary approvals has been time-consuming, adding to the delays. The Indian government and maritime industry stakeholders continue to explore solutions to overcome these challenges. Collaborations with established international P&I Clubs, capacity-building initiatives, and policy reforms are being considered to revive the project. Despite the setbacks, there remains optimism that with concerted efforts, the vision of a locally owned P&I Club can still be realised, bolstering India's maritime sector in the long run.

Next Story
Infrastructure Transport

Tripura Rail Survey Approved For Jirania–Bodhjung Link

The Ministry of Railways has approved a Final Location Survey (FLS) for a proposed new railway line between Jirania and Bodhjung Nagar in Tripura. The planned section will span 14 km and is estimated to cost around Rs 4.2 million, with the entire alignment located within West Tripura district. The approval marks a key step towards strengthening railway infrastructure and supporting industrial growth in the state. Bodhjung Nagar is Tripura’s principal industrial and commercial hub, developed mainly for resource-based industries such as rubber, bamboo and food processing. The proposed Jirania..

Next Story
Infrastructure Transport

MCF Raebareli Rolls Out Its 15,000th Passenger Coach

The Modern Coach Factory (MCF) in Raebareli, Uttar Pradesh, has reached a major production milestone with the manufacture of its 15,000th passenger coach on December 15, the Ministry of Railways said. During the current financial year 2025–26, the unit has produced a total of 1,310 coaches so far. Established in 2007 at Lalganj in Raebareli, MCF is among India’s most advanced passenger coach manufacturing facilities. Built at a cost of around Rs 31.92 billion, the factory has an installed annual capacity of 1,000 coaches and is located about 3 km from Lalganj on the Kanpur–Raebareli Roa..

Next Story
Infrastructure Transport

RVNL Wins Gandak River Rail Bridge Contract

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award from North Eastern Railway for a major railway infrastructure project valued at Rs 1.65 billion. The contract relates to the construction of the substructure for a key railway bridge over the Gandak River. The bridge will be constructed between Paniyahwa and Valmikinagar stations as part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section. Designed to enhance capacity and operational efficiency, the structure will comprise 14 spans of 61 metres each and will be supported by double D-type well foundations. The des..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App