India’s bid to establish its first domestic protection and indemnity (P&I) club - provisionally titled India Club - is being hailed by policymakers as a measure to strengthen sovereign maritime insurance capacity. But as regulatory and infrastructural steps unfold, questions are beginning to mount over whether the initiative is as much about geopolitical calculus as it is about commercial independence.
While the Ministry of Ports, Shipping, and Waterways has framed the development as a way to provide locally underwritten liability coverage for Indian vessels - particularly those operating in coastal waters and inland navigation routes - the broader context suggests a more nuanced motivation. The move comes as India dramatically expands trade with Russia, a sanctioned state, while relying increasingly on non-Western maritime and financial infrastructures.
Shipping Secretary T.K. Ramachandran recently confirmed the government’s intention to proceed with setting up the club, following a tender process to appoint consultants and a pending proposal to be submitted to the Union Cabinet. The club would be designed to insure third-party liabilities - including oil pollution, wreck removal, and cargo loss - traditionally covered by international P&I clubs, primarily the London-based International Group (IG), which dominates the global maritime liability space. He has appointed ACE Insurance Brokers Pvt Ltd to help assess launching India Club.
But the timing of India Club’s creation is notable. The project coincides with India’s extensive and increasingly opaque trade in Russian oil and commodities, much of it executed outside the dollar-based global payments system and often without recourse to Western insurers or brokers.
A sharp rise in India’s imports from Russia - surging from under $10 billion in 2022 to over $61 billion in fiscal year 2024 - has come despite sweeping US-led sanctions on Moscow. Analysts believe the establishment of a local P&I entity could further facilitate this trade by reducing exposure to foreign underwriters who may refuse cover on geopolitical or compliance grounds.
While New Delhi officially disavows recognising unilateral sanctions, Indian shipping companies still rely on insurance certificates that must pass muster with global reinsurers, brokers and port state controls. India Club may thus provide a domestically controlled workaround - a fallback in scenarios where IG-affiliated clubs decline coverage due to sanctions risks.
India has already tightened verification protocols for incoming vessels’ P&I documentation following recent disputes over invalid certificates and unpaid premiums. Port authorities are now required to authenticate insurance certificates via insurer websites or through appointed agents, with clear guidance that vessels lacking verified, valid cover may be denied entry.
In parallel, India’s trade infrastructure is increasingly being retooled to accommodate rupee-based settlements with Russia, bypassing the dollar and thereby avoiding direct interaction with US-controlled financial mechanisms. Two lesser-known Indian banks - UCO Bank and IndusInd Bank - have reportedly taken on the bulk of this exposure, shielded in part by their limited ties to Western banking systems.
Experts suggest that having a domestic P&I institution could complete the financial firewall, allowing Indian vessels engaged in sanctioned trade routes - such as the transport of Russian oil — to obtain insurance without triggering compliance alerts in London or New York.
“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,” says a Delhi-based maritime risk advisor, who declined to be named due to client confidentiality.
India has, in effect, positioned itself as an intermediary in the global energy trade. Much of the Russian crude it imports is refined and re-exported to third countries, including buyers in Europe. This has allowed New Delhi to maintain relations with Western allies - notably through the Quadrilateral Security Dialogue (Quad) - while pursuing a resource acquisition strategy that some describe as economically realist, if diplomatically delicate.
In this light, India Club’s formation may be less a technical evolution of the domestic insurance sector and more a deliberate geopolitical manoeuvre. By insuring its own vessels domestically, India not only reduces external exposure but also inserts a layer of sovereign discretion into which cargoes are covered - and which are not.
From an underwriting perspective, the challenge will be whether India Club can match the risk appetite and actuarial discipline of the IG Clubs it seeks to supplant - particularly in high-value claims and cross-border disputes. Industry insiders point out that mutual insurance thrives on deep capital reserves and diversified membership - traits that may take years for a new entrant to cultivate.
Still, with public sector insurers expected to provide seed capital, and domestic fleet owners likely forming the core membership, India Club may prove functional as a captive-style facility for politically sensitive trade routes, if not yet a true global player.
ACE Insurance Brokers Pvt Ltd has steadily established itself as a significant presence in India’s insurance and reinsurance landscape. With a growing list of strategic engagements, including consultancy for government-led insurance reform initiatives, ACE is playing an increasingly important role in shaping India’s risk management infrastructure.
Founded in the early 2000s and headquartered in Mumbai, ACE is a licensed composite broker under the Insurance Regulatory and Development Authority of India (IRDAI). This authorisation allows the firm to operate across both direct insurance broking, advising clients on commercial and retail lines, and reinsurance placements, working with insurers to secure capacity from global reinsurers. It has 15 offices in the country, and employs over 350.
Over the years, ACE has expanded its footprint across several industry verticals including infrastructure, logistics, manufacturing, and energy. Its approach combines tailored risk solutions with in-depth technical analysis, offering clients highly customised insurance programmes that reflect the nuances of their operational exposures.
What distinguishes ACE from many of its competitors is its advisory role within the public sector. The company has quietly become a preferred consultant for various government departments and regulatory bodies, particularly where insurance intersects with public infrastructure and national interest. One of its most high-profile assignments to date is its engagement by the Directorate General of Shipping to assess the feasibility of launching India’s first domestic Protection and Indemnity (P&I) club. This proposed entity, known as India Club, is being developed to provide domestic liability coverage for Indian-flagged vessels, potentially reducing the country’s reliance on international P&I clubs.
ACE’s remit in the India Club project includes advising on the structure, capitalisation, governance, and regulatory compliance of the proposed mutual insurance facility. The outcome of this work could significantly alter the maritime insurance landscape in India, particularly as the government seeks to create domestic alternatives to foreign insurers and reduce vulnerability to geopolitical risks.
Within the insurance industry, ACE is often regarded as technically sound and quietly influential. Its strength lies in specialist areas such as risk engineering and claims advocacy.
Unlike some larger and more marketing-driven brokers, ACE maintains a discreet presence, focusing on delivery rather than visibility. This low-profile approach has proved successful, particularly in working with public sector enterprises and government bodies where trust, continuity, and discretion are key.
In the reinsurance arena, ACE has facilitated placements between Indian insurers and global reinsurers, including Lloyd’s syndicates and regional capacity providers in Singapore and the Middle East. As India’s reinsurance market continues to open up, the firm is well positioned to help clients navigate both established and emerging markets.
