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Letter of Indemnity

A Bill of Lading serves as a document of title to the goods concerned. It is a receipt, with which the carrier acknowledges that the goods have been loaded on his vessel. As soon as this has physically happened, the document is referred to as an On-board Bill of Lading (B/L)

Loss of an On-board B/L – Letter of Indemnity (LOI):

Simplified credit check, indication within 24 hours.

Necessary information for an indication:

Name and VAT Nr., of the guarantee, amount insured.

Charges:

Usually the beneficiary requires the Letter of Indemnity covering 200% of the cargo value. The period of validity is depended on the applicable law. 15 months for Hague Rules, 30 month for Hamburg Rules. You will receive the indication within 24 hours.

  1. LOI with bank guaranty - no collaterals.

Most shipping companies insist in a LOI that is issued by a bank. We charge the following fees for providing these. Exceeding US$ 100.000 1,5% of the insurance value with up to 15 months, respective 3% of the insurance value up to 30 months duration.

Minimum premium below US$ 100.000 insurance value:

  1. LOI with Insurance Cover - no collaterals.

Alternatively, we provide insurance cover with a well-established Insurance company (AA rating according to S&P). Exceeding US$ 100.000 for 1,3% of the insurance value with up to 15 months, respective 2,6% of the insurance value up to 30 months duration.

Minimum premium below US$ 100.000 insurance value:

 

Required for issuing the LOI:

  • Copy of the B/L
  • Copy of the commercial invoice
  • Written confirmation of the shipper that the B/L documents have been lost
  • Fully filled original form „LOI/Verpflichtung“ printed on letterhead of the company (for a bank guaranty signed and stamped by the bank)

If requester and recipient of the cargo are identical, the shipper has to be informed, and the following steps are to be taken:

The shipper must send a statement concerning the Point of Lading (POL) to Gracher Kredit- & Kautionsmakler:

He must acknowledge, that he has been informed about the loss of the On-board B/L.

He must acknowledge, that he is willing to release the cargo without an On-board B/L, but a coverage through a bank guaranty or an insurance cover.