Background

• Due to the withdrawal of international marine cargo insurance capacity for covering imports and exports to/from Russia, Ukraine, and Belarus, there arose a need to create a domestic Marine Cargo Pool to insure shipments related to these Excluded Territories. This withdrawal of capacity stemmed from increased geopolitical risks, sanctions, and instability in these areas, making it difficult for Indian businesses to obtain necessary insurance coverage. Consequently, the Marine Cargo Pool for Excluded Territories (MCET Pool) was formed and commenced operations on 1st June 2022.

Capacity

• The Pool currently provides insurance for Indian Insureds for Marine Cargo shipments of commodities to/from the excluded territories of Russia, Ukraine and Belarus.
• The marine cargo risks are insured by Direct Domestic General Insurance Companies that are members of the Pool, who issue policies using the Pool's combined underwriting capacity.
• These risks are subsequently reinsured by all Pool members, including GIC Re, in proportion to the capacity each member has committed to the Pool.
• The Pool incepted on 1^st June 2022, with a total of 21 members, contributing a capacity of INR 484.80 crore per shipment (excluding Obligatory Cession). The Pool’s revised capacity w.e.f. 1^st July 2023 is INR 478.80 crore (Net of Obligatory cession limits), provided by a total of 20 members.
• The maximum aggregate limit of liability per loss / per event will be up to Pool capacity.