Marine insurance is one of the most essential financial instruments for the cruise ships, yachts, sail boats and merchant navy ships. It provides full 360 degree protection to the vessel from any sorts of damages or accidents. The best part of the marine insurance is that it not only covers the entire ship, but it also protects the people on board that include passengers, crew, captain and other staff. Once cruise ship starts sailing in water then no one knows the fate of the ship or journey. On an average there were more than 4000 small and large accidents or tragedies happens in the sea every year that  take around 100 lives approximately and loss accounting to billion dollars.

Marine insurance policies are of different types and have different coverage. Some policy only cover the cost of the vessel, while some policies that also covers the life of the people on board the vessel and damage to the property of the vessel. For the cargo ships marine insurance is very important because they carry hue amount of cargo vessels amounting billions of dollars. However, these policies are only valid if captain follows the respective guidelines.  Every cargo ship floats on a designated route from one destination to other. If ship changes its route in the mid way and become the victim of any peril then compensation should not be paid until there are valid reasons for switching the route.