Before giving or receiving an LOI you should consider your position carefully. The situations giving rise to the creation of an LOI may prejudice your P&I cover.
You should therefore think carefully about your position and discuss it with the Club or your legal advisers. You should also be aware that depending upon the facts of a particular situation, an LOI may not be legally enforceable. You may therefore find yourself without P&I cover and without a claim under the LOI. You should also make your own checks about the ability of the company giving the LOI to make payment under it and that the person signing the LOI has authority to bind the company in question.
Important Note when using these texts
1) Attention is drawn to P&I Class Rule 19(17)(D) Discharge at Wrong Port etc
2) Charterer Members should contact the Association for the appropriate wording where Charterers are receiving a Letter of Indemnity as Disponent Owners
3) Members should also refer to Club Circulars BILLS OF LADING – DELIVERY OF CARGO, 01 February 2001, INTERNATIONAL GROUP STANDARD FORM LETTERS OF INDEMNITY dated 01 October 2010 and 18 October 2010.
Download 'Standard Form Letters of Indemnity'
2B: Standard Form Letter of Indemnity to be given in return for delivering cargo at a port other than that stated in the Bill of Lading incorporating a bank’s agreement to join in the Letter of Indemnity
3B: Standard Form Letter of Indemnity to be given in return for delivering cargo at a port other than that stated in the Bill of Lading and production of the original Bill of Lading incorporating a bank’s agreement to join in the Letter of Indemnity