Union Cabinet Minister Ashwini Vaishnaw during the media briefing said the pool ensures that Indian trade continues to have access to affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice-versa, even when transiting volatile maritime corridors.
As per the details shared by the minster, the scheme will cover all maritime risks like hull and machinery, cargo, P&I and war risks. The vessels covered included India flagged vessels, India controlled vessels, and Vessels with India as origin or destination.
"A sovereign guarantee fund of approximately Rs 12,980 crore will be created for maritime insurance. It will cover all types of maritime risks, including machinery, cargo, and war. It will be given to Indian-flagged vessels, Indian-controlled vessels, and those with either an origin or destination in India. This will be for a ten-year period, with a five-year extension," the minister said.
The duration for the insurance will be of 10years, which can be extended upto a period of 15 years.
Explaining the benefits, the Cabinet said it will be assuring continuity of insurance coverage, as well as reduce dependency on foreign insurers. Further, the scheme will save forex outgo on insurance premiums.
The increased global volatility and geopolitical instability, maritime trade has been impacted with increased risk of losses for cargo and vessels resulting in increased insurance costs and uncertainty in continuous availability of insurance.
The policies will be issued by insurers that are Pool members, using the combined underwriting capacity of the Pool, which would be around Rs.950 crore. The Pool will help to manage liability insurance locally, tailored to Indian Shipping conditions and regulatory requirements, develop specialized Marine underwriting, claims management and legal expertise within India, as per the government release.
2% DA Hike for Central Govt Employees
Union Cabinet further approved2% dearness allowance (DA) hikefor central govt employees, pensioners, raising the allowance from the current rate of 58 per cent to 60 per cent. The adjustment serves to address the long-standing wait of the workforce for a revision in their compensation structure, Union Cabinet Minister Ashwini Vaishnaw said.
"The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs 6791.24 crore per annum. This will benefit about 50.46 lakh Central Government employees and 68.27 lakh pensioners," Minister Vaishnaw said while addressing the media.
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