Definitions for "Letter of Indemnity"
Guarantee from the shipper or consignee to indemnify carrier for costs and/or loss, if any, in order to obtain favorable action by carrier, e.g. sometimes, it is used to allow consignee to take delivery of goods without surrendering B/L which has been delayed or become lost (for straight consignment case).
Written statement in which one party undertakes to compensate another for the costs and consequences of carrying out a certain act. The issue of a letter of indemnity is sometimes used for cases when a shipper likes receiving a clean Bill of Lading while a carrier is not allowed to do so. Within Trans Misr the issue of letters of indemnity is contrary to the company's instructions.
A document which the writer issues to another party agreeing to protect them from liability for the performance of certain acts. 1. In the case of international transportation when a negotiable bill of lading has been issued but is not available for surrender to the carrier when it is desired to take delivery of the shipment, a bank may issue a letter of indemnity to the carrier to persuade them to release the cargo. (A Letter of Guarantee may also be used ). The bank will usually obtain a similar letter from its client to protect itself against the liability it assumes on behalf of the client. 2. On export shipments, some carriers may permit shippers to issue letters of indemnity to the carriers in order to secure from them clean bills of lading in place of foul, or to replace lost original bills of lading.
Keywords:  ironclad
A legally binding contract whereby one party agrees to reimburse another for loss resulting upon the occurrence of a stated event.
document whereby the issuer undertakes to renounce any claim which may arise in specified circumstances