Letter Of Indemnity Meaning. A letter of indemnity (loi) is a contractual document that guarantees certain provisions will be met, between two parties. The term “letter of indemnity” can appear in two different legal senses.
Specifically, a letter of indemnity mandates that if one party is unable to complete the contract, that party will pay reparation to the other. It is a written document where the third party assumes the responsibility to cover for losses incurred if certain contractual stipulations are not complied. A letter of indemnity is written to reassure the other party with specific measures that will hold them harmless.
Indemnity is defined as protection from damage, injury, financial loss or legal liability.
Indemnity insurance, hell or high water contract. The duty to indemnify is usually, but not always, coextensive with the contractual duty to hold harmless or save harmless. If something provides indemnity , it provides insurance or protection against damage or. A letter of indemnity (loi) is a document which the shipper indemnifies the shipping company against the implications of claims that may arise from the issue of a clean bill of lading when the goods were not loaded in accordance with the description in the bill of lading.