Rapid Fire
RELIEF Scheme and P&I Club
- 23 Mar 2026
- 3 min read
The Union Government has introduced the Rs 497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme to provide credit insurance cover at pre-conflict rates for Indian exporters, particularly MSMEs, whose goods are stranded or at risk due to the ongoing West Asia crisis.
- Apart from this, India is also exploring the creation of a domestic Protection & Indemnity (P&I) club to safeguard its shipping operations amid rising risks in the Strait of Hormuz.
RELIEF Scheme
- About: It has been launched by the Ministry of Commerce and Industry to provide financial surety and alleviate hardships for Indian exporters facing rising maritime risks due to geopolitical instability in the Gulf and wider West Asia maritime corridor.
- Three-Part Framework:
- Component 1: Supports exporters already holding ECGC Ltd. (Export Credit Guarantee Corporation) cover by maintaining pre-disruption premium rates for consignments issued between 14th February and 15th March, 2026. It will provide enhanced cover up to 100% of loss for war-related risks.
- Component 2: Encourages new exporters (excluding energy shipments) to opt for ECGC insurance for the next three months (16th March and 15th June 2026), providing up to 95% loss coverage.
- Component 3: Specifically targets MSME exporters who lacked prior insurance, offering a cap of Rs 50 lakh per exporter for affected shipments.
- Geographic Coverage: Applies to exports bound for UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain, Iraq, Iran, Israel, and Yemen.
P&I Club Initiative
- Protection & Indemnity (P&I) Clubs are mutual, non-profit associations formed by shipowners to insure against third-party maritime liabilities.
- Unlike standard marine insurance, they cover risks like personal injury to crew members, pollution, cargo damage, collisions, and legal liabilities.
- Most global shipping risks are covered by the International Group of P&I Clubs, which insure about 90% of the world’s ocean-going fleet.
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