UPSC Prelims Practice Questions — Bharat Maritime Insurance Pool
Q1. Under the claim-servicing design of the Bharat Maritime Insurance Pool (BMIP), up to what amount per claim does the pool pay from its own capacity, beyond which the sovereign guarantee can be invoked?
- A. USD 45 million
- B. USD 100 million
- C. USD 1.4 billion
- D. USD 1.5 billion
Q2. Consider the following statements comparing the Bharat Maritime Insurance Pool (BMIP) with the Indian Nuclear Insurance Pool (INIP):
1. Unlike the INIP, where each member company's share is predetermined, the BMIP does not demand a fixed level of contribution from private insurers.
2. While the INIP insures liability prescribed under the Civil Liability for Nuclear Damage Act, 2010, the BMIP covers all maritime risks, including Hull and Machinery, Cargo, P&I and War risk.
3. The BMIP covers exclusively Indian-flagged vessels, whereas the INIP covers nuclear operators irrespective of nationality.
Which of the statements given above is/are correct?
- Unlike the INIP, where each member company's share is predetermined, the BMIP does not demand a fixed level of contribution from private insurers.
- While the INIP insures liability prescribed under the Civil Liability for Nuclear Damage Act, 2010, the BMIP covers all maritime risks, including Hull and Machinery, Cargo, P&I and War risk.
- The BMIP covers exclusively Indian-flagged vessels, whereas the INIP covers nuclear operators irrespective of nationality.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q3. The Bharat Maritime Insurance Pool, cleared by the Union Cabinet in April 2026, was formally launched in May 2026 by which of the following?
- A. Department of Economic Affairs, Ministry of Finance
- B. Department of Financial Services, Ministry of Finance
- C. Ministry of Ports, Shipping and Waterways
- D. Ministry of Petroleum and Natural Gas
Q4. Which one of the following best describes the 'pooling' mechanism by which risk is shared under the Bharat Maritime Insurance Pool?
- A. Member insurers issue policies, and the risk is reinsured by all members in proportion to their capacity commitment
- B. Member insurers issue policies, and the risk is shared equally among all members regardless of their capacity commitment
- C. Member insurers issue policies, and the entire risk is ceded to GIC Re as an obligatory cession
- D. Member insurers issue policies, and the risk is retroceded to the International Group of P&I Clubs
Q5. Which one of the following bodies provides marine third-party liability cover for the largest share of the world's ocean-going tonnage, and is the body on which Indian vessels have been highly dependent?
- A. The International Group of P&I Clubs
- B. The Lloyd's of London insurance market
- C. The International Union of Marine Insurance
- D. The International Maritime Organization
Q6. How many mutual Protection and Indemnity (P&I) clubs make up the International Group of P&I Clubs?
Q7. Consider the following statements regarding different types of marine insurance cover:
1. Protection and Indemnity (P&I) cover addresses third-party liabilities such as oil pollution and crew injury, whereas Hull and Machinery cover insures physical loss of or damage to the vessel itself.
2. Liability for wreck removal is borne under Hull and Machinery cover rather than under P&I cover.
3. Unlike ordinary cargo cover, war-risk insurance is priced separately for high-risk areas and has added an estimated USD 2,000–4,000 per container during the Red Sea crisis.
Which of the statements given above is/are correct?
- Protection and Indemnity (P&I) cover addresses third-party liabilities such as oil pollution and crew injury, whereas Hull and Machinery cover insures physical loss of or damage to the vessel itself.
- Liability for wreck removal is borne under Hull and Machinery cover rather than under P&I cover.
- Unlike ordinary cargo cover, war-risk insurance is priced separately for high-risk areas and has added an estimated USD 2,000–4,000 per container during the Red Sea crisis.
- A. 1 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q8. In India, which authority maintains the list of approved insurers outside the International Group that may provide P&I cover to ships, under Rule 2(e) of the Merchant Shipping Rules, 2012?
- A. Insurance Regulatory and Development Authority of India
- B. Department of Financial Services, Ministry of Finance
- C. Directorate General of Shipping
- D. General Insurance Corporation of India (GIC Re)
Q9. Consider the following statements about two maritime chokepoints relevant to war-risk insurance for India-bound shipping:
1. The Bab el-Mandeb, lying between Yemen and Djibouti, connects the Red Sea with the Gulf of Oman.
2. The Strait of Hormuz, lying between Iran and Oman, connects the Persian Gulf with the Gulf of Aden.
3. According to the IMF (April 2026), more than two years after attacks on shipping began, transits through the Bab el-Mandeb remain at roughly half their pre-attack level.
Which of the statements given above is/are correct?
- The Bab el-Mandeb, lying between Yemen and Djibouti, connects the Red Sea with the Gulf of Oman.
- The Strait of Hormuz, lying between Iran and Oman, connects the Persian Gulf with the Gulf of Aden.
- According to the IMF (April 2026), more than two years after attacks on shipping began, transits through the Bab el-Mandeb remain at roughly half their pre-attack level.
- A. 3 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q10. Which one of the following entities has been designated as the administrator of the Bharat Maritime Insurance Pool, responsible for submitting its returns, reinsurance details and performance statements?
- A. GIC Re, India's national reinsurer
- B. IRDAI, the insurance sector regulator
- C. Directorate General of Shipping, the maritime administration
- D. Ministry of Ports, Shipping and Waterways, the nodal maritime ministry
Q11. Which one of the following correctly describes the authority behind, and the scope of, the Russian oil price cap that ties tanker insurance for India's crude imports to Western maritime service providers?
- A. Imposed by the G7, EU and Australia, it bars Western insurance, flagging and transport services for Russian oil sold at or above USD 60 a barrel
- B. Imposed by the UN Security Council, it binds all member states, including India, to refuse Russian crude priced above USD 60 a barrel
- C. Imposed by the G7, it bars Western insurers from covering any tanker carrying Russian oil, regardless of the price paid
- D. Imposed by the International Group of P&I Clubs, it permanently excludes all Russian-origin cargoes from its members' cover