Delphine Estibeiro –
The Directorate General of Shipping is taking significant steps to enhance India’s maritime sector, with a focus on establishing an Indian Protection & Indemnity (P&I) Club. Speaking at the Quadrant Legal & Khaitan Legal maritime event on 3rd July at Hotel Trident in Mumbai, Mr Ash Mohomad, Deputy Director General, emphasized the need for collaboration between the government, industry, and stakeholders to make this vision a reality.
The Indian maritime sector has seen significant growth, with over 1,500 ships, 11,000 km of coastline, and 200 ports. However, despite this growth, the sector still relies heavily on foreign insurance providers, with marine insurance accounting for only 2% of non-life insurance statements in India.
The DG Shipping has been working on revising the Merchant Shipping Bill, which is expected to be passed by Parliament in the upcoming monsoon session. The bill aims to adopt best practices and improve the maritime sector’s competitiveness and sustainability. The Directorate is also forming various committees to review and revise rules and regulations related to shipping, including those related to insurance and protection indemnity.
The establishment of an Indian P&I Club is crucial for the growth of the maritime sector, as it would provide protection and indemnity services to shipowners and reduce reliance on foreign insurance providers. The government has floated a tender for a study on the feasibility of establishing an Indian P&I Club, which will provide recommendations for its implementation.
Mr. Mohomad emphasized the need for collaboration between the government, industry, and stakeholders to make the Indian P&I Club a reality. He noted that the government alone cannot make this happen and that public-private partnerships are essential for its success.
The DG Shipping is also working on green shipping initiatives, including the development of a green shipping policy. The policy aims to promote sustainability, competitiveness, and innovation in the maritime sector. However, Mr. Mohomad noted that the insurance aspect of green shipping is still missing and that collaboration is needed to address this gap.
In conclusion, the establishment of an Indian P&I Club is a significant step towards enhancing India’s maritime sector. The DG Shipping’s efforts to promote collaboration and public-private partnerships are crucial for the success of this initiative. With the right support and cooperation, India can develop a robust maritime insurance sector that supports the growth of its shipping industry.
Marex Media