Letter of Indemnity Why do I need One
It is not usual, but there are chances you might come across when you plan to ship internationally: other than providing the regular customs paperwork for your consignment, you are also requested to give a letter of indemnity.
So what is a letter of indemnity? What are its uses? And why may a courier shipment attract may need one?
Now if you were in doubt what indemnity meant; it’s simply security or protection from a financial loss. In the case of sending a courier, that monetary loss comes from claims against damages or lost of parcels under unavoidable circumstances.
What is meant by an indemnity Letter?
In simple terms, a document in which the shipper indemnifies the carrier against any claims that may shoot from afar the carriers control. It is a common practice while sending by ship, or when the carrier of the commodity are opting a non-contractual risk.
Letters of indemnity are used instead of a Bill of Lading sometimes, when you ship by sea. This is the scenario when there is no time to get hold of a bill of lading due to Bill of lading going astray in the post, etc. Or goods need an amendment of ship to reach their destination.
In a nutshell, a letter of indemnity is the sender of a courier or package waiving their right to claim for damages or loss to a parcel when delivery is being made to a location which may be disconcerted or dangerous.
And many times, this is the only way a courier can be delivered , as most delivery operators may not deliver to addresses which may call for further risk.
When does A Carrier require a letter of Indemnity letter?
A carrier needs a letter of indemnity when a courier is sent to countries that are currently unsettled. If you hold any doubts about this definition, then please feel free to speak in detail with the carrier. They will be able help you with the exact location where you might require a letter of indemnity.