New Delhi, April 18: India’s cabinet on Saturday approved a ₹12,980 crore ($1.4 billion) sovereign-backed maritime insurance pool to provide cover for Indian-linked vessels operating in high-risk waters, while also clearing a 2 percentage-point increase in dearness allowance and dearness relief for central government employees and pensioners.
The new insurance mechanism, called the Bharat Maritime Insurance Pool, is intended to ensure uninterrupted protection for ships facing geopolitical and war-related risks, particularly on sensitive trade routes such as the Strait of Hormuz. The move is aimed at reducing dependence on foreign insurers and strengthening India’s shipping resilience amid global uncertainty.
In a separate decision, the cabinet approved a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR), raising the rate from 58% to 60% of basic pay and pension. The increase takes effect from January 1, 2026, and is expected to benefit about 1.18 crore central government employees and pensioners.
The twin decisions were announced after a cabinet meeting chaired by Prime Minister Narendra Modi, with officials presenting them as measures to bolster both trade security and household incomes in the face of external risks and inflation pressures.
