The Polar was carrying 70,000 mt of fuel oil under a voyage charterparty. Under the V/C, the charterers were to pay for the K&R insurance and War Risks policy. The V/C incorporated YAR. B/Ls were issued incorporating the V/C. The vessel was kidnapped while transiting Gulf of Aden en route St Petersburg to Singapore. A ransom was paid to the pirates to have the vessel and the cargo released. The owners brought a general average contribution claim against the cargo owners under B/Ls pursuant to YAR for the ransom payment. Sir Nigel Teare held that as between the owners and the charterers the insurance provision created a complete code, whereby the charterers will pay the premium and the owners’ only resort is to the insurance fund, thus the charterers are relieved from the obligation to pay general average contribution when the insured risk materialises. The general incorporation clause in the B/L does not put the liability to pay the premium on the B/L holders. It follows that exception from general average contribution is not imported into the B/L. His lordship noted that in Ocean Victory, which concerned safe port warranty, the insurance was taken in the joint names of the owners and charterers. In The Eva No. 2, also a case concerning safe port warranty, the insurance was not in the joint names. In both these cases, the courts held that the insurance provision created a complete code for the owners to recover their losses from the insurer, thus relieving the charterers.