North P&I Club announced that has published a new edition of its guide book on letters of indemnity, in order to explain how to avoid disputes and problems arising from the use of letters of indemnity, reflecting recent case law and current industry practice.
Starting with a health warning, the 2017 edition of ‘Letters of Indemnity: A Guide to Good Practice’ provides commentary on the common types of letter of indemnity, the reasons they are used, the pitfalls and risks, and some of the legal and insurance issues which arise out of their use.
According to North’s head of loss prevention Tony Baker: ‘Letters of indemnity remain in widespread use in international trade and shipping in conjunction with, and sometimes in substitution for, bills of lading. Using letters of indemnity can be risky, potentially leaving shipowners exposed to high value claims and without P&I insurance cover.’
The second edition works on various levels, with practical guidance supplemented by detailed analysis and footnotes to show the latest legal foundation of the advice given.
