Next big reform in Indian insurance will be indemnity cover for shipping

Amendment to have such a facility could be part of new government's early legislative agenda

The Insurance Act will have to be amended to make room for an Indian protection and indemnity facility (P&I) for shipping companies in the country, an expert committee set up by the finance ministry has said.

The Act does not have any provision for entities like mutual insurance associations to operate in the sector. “This (amendment in the Act) also means the new line of business will have to wait for the formation of a new government after the general elections,” said a government source aware of the developments.

Finance Minister Nirmala Sitharaman told a shipping conclave in Mumbai last year that