India’s maritime authorities have granted an interim extension to four Russian insurers to continue providing protection and indemnity (P&I) coverage for vessels calling at Indian ports, while the country moves ahead with plans to establish its own domestic P&I club.
According to information on the Directorate General of Shipping (DGS) website cited by Baird Maritime, India has granted temporary approval to four Russian insurers to continue offering marine liability cover to ships arriving at its ports beyond the previous registration expiry date of February 20, 2026. The insurers concerned are Soglasie Insurance, Sberbank Insurance, Ugoria Insurance Group, and ASTK Insurance. The interim arrangement is intended to remain in place until formal approval is granted to these entities to provide P&I coverage for vessels entering Indian ports. With this decision, India now recognises eight Russian entities as eligible to provide P&I cover for ships trading with the country. These Russian insurers are understood to focus largely on vessels transporting Russian oil, a trade that has increasingly relied on non-Western insurance and financial channels as sanctions and compliance requirements have tightened around Moscow-linked cargoes.
Insurance is a central requirement for maritime transport, especially for oil and other hazardous cargoes, which are subject to liability regimes for pollution and spill-related losses. By extending access to Russian marine insurers, Indian authorities are maintaining a channel for Russian cargoes, including crude oil, to continue moving to and from Indian ports with P&I documentation accepted by local regulators. The Russian insurers active in this segment remain outside the International Group of P&I Clubs, which provides liability coverage for most of the world’s tanker fleet. Their participation in the Indian market therefore operates alongside the London-based mutual club framework that has traditionally supported global tanker and bulk shipping business.
The interim extension to Russian P&I providers follows India’s push to set up its first domestic P&I club, tentatively referred to as India Club. Policymakers have described the initiative as a measure to establish domestic maritime insurance capacity and adjust the balance between local and overseas mutuals for third-party liability coverage. Shipping Secretary T.K. Ramachandran has said the government intends to proceed with the establishment of the club after conducting a tender process to appoint consultants and preparing a proposal for consideration by the Union Cabinet. The planned facility would underwrite third-party liabilities such as oil pollution, wreck removal, and cargo loss, areas currently handled predominantly by International Group-affiliated clubs.
The timing of this initiative coincides with an expansion in India’s trade with Russia, including purchases of Russian crude and commodities often settled outside the dollar-based system. India’s imports from Russia have increased in recent years, even as US-led sanctions have targeted Moscow’s energy exports and associated logistics. Market observers note that a locally controlled P&I platform could provide Indian shipowners and charterers with an additional option when international clubs or reinsurers are constrained by sanctions or internal compliance policies. It may also provide capacity for Indian-flagged or Indian-operated vessels involved in trades subject to heightened regulatory or political scrutiny.
In parallel, India has moved to tighten oversight of vessels’ P&I documentation. Following disputes over invalid certificates and non-payment of premiums, port authorities have been instructed to verify the authenticity of P&I cover through insurer websites or appointed agents. Ships that cannot demonstrate valid and verifiable insurance may be refused entry. This regulatory stance is in line with practices under port state control and indicates that India is seeking clearer assurance on the standing of P&I certificates presented by vessels, including those insured outside the International Group framework. A Delhi-based maritime risk advisor, who declined to be identified due to client confidentiality, said: “The scale of rupee accumulation by Russian banks, the growing use of alternative currencies, and the closed-loop nature of many of these transactions all point to a carefully engineered financial ecosystem.”
ACE Insurance Brokers Pvt Ltd, a composite broker headquartered in Mumbai, has been appointed to advise the Directorate General of Shipping on the feasibility and design of India Club. Licensed by the Insurance Regulatory and Development Authority of India (IRDAI), ACE operates across both direct insurance broking and reinsurance placements for corporate and infrastructure-focused clients. For the India Club project, ACE’s responsibilities include advising on the proposed mutual’s structure, capital model, governance framework, and regulatory compliance.
The firm is also expected to assess how the club might use international reinsurance, including Lloyd’s syndicates and regional hubs such as Singapore and the Middle East, to support larger or complex marine liabilities. Industry practitioners note that mutual P&I operations generally rely on diversified fleets, established loss records, and adequate reinsurance arrangements to manage high-severity events and cross-border legal exposures. The establishment of a domestic P&I facility in India is therefore expected to be a gradual process as capital, membership, and operating experience develop.
For insurance professionals across Asia, India’s combined approach – maintaining access for Russian P&I insurers while progressing a domestic club – points to potential shifts in how marine liability capacity may be sourced in the region. If India Club becomes operational and begins to assume a larger share of liability exposures for Indian-flagged or India-linked tonnage, regional reinsurers and brokers could see additional demand for quota share, excess-of-loss, and facultative support. At the same time, global P&I clubs and their reinsurers are likely to track whether India’s model remains complementary to the International Group system or gradually replaces some international capacity in certain trades. How India manages the interaction between interim reliance on Russian insurers, the build-out of domestic capacity, and continued engagement with international markets is likely to influence risk transfer structures for energy, commodities, and general cargo flows across Asia in the coming years.
