MT Polar - UK Supreme Court - implying an insurance code or fund into a charterparty MT Polar - UK Supreme Court - implying an insurance code or fund into a charterparty Explore this recently published article on UK supreme Court ruling The Polar, regarding the implications of insurance codes or funds in charterparty agreements Articles Brenna Yeo Published: February 22, 2024 Contact author Download article pdf The ‘normal’ rule is that a defendant should not be able to benefit from a claimant's decision to take out insurance. Accordingly, insurers are able to pursue subrogated claims against third parties. However, contractual parties may agree for specified losses or damages to be covered by insurance with both parties benefiting from the “protection” afforded by that insurance such that there are no subrogated rights for their insurer to pursue to mitigate the exposure. Such an “insurance code” or “insurance fund” was held to exist under a demise charter in The Ocean Victory [2017] UKSC 35 as well as under a time charter in The Evia (No. 2) [1983] 1 AC 736 [HL]. The question of whether an insurance code or fund existed in the context of a voyage charter was recently considered in Herculito Maritime Limited v. Gunvor International BV [2024] UKSC 2 (the “ MT Polar ”). The case is discussed in two other articles by the Club, one in the context of War Risks Clauses , the other on the incorporation of terms from a voyage charter into bills of lading . This article focuses on another aspect of The Polar ; the insurance code question, and the argument by the cargo interests that they were not liable to contribute by way of general average to a ransom paid to pirates. Their argument was that because: Under the charterparty additional insurance premia incurred for transit through the Gulf of Aden were to be paid by the charterer; That this amounted to an insurance code so that the owner could not claim against the charterer in respect of losses arising out of risks for wh