INTERNATIONAL GROUP STANDARD FORM LETTERS OF INDEMNITY Delivery of cargo without production of Bills of Lading 12 October 2010 No.10-016 Members are referred to the Circular on delivery of cargo under bills of lading, without production of the original bill of lading, issued in March 2001 and the accompanying International Group Standard Form Letters of Indemnity. (Our special circular No.00-021) Following the decision in the English Commercial Court in the case of Farenco Shipping Co Ltd -v- Daebo Shipping Co Ltd (LLR (2009) Vol 1 81) (the `Bremen Max') the Club recommends that Members take two further precautions if they choose to accept a Letter of Indemnity for delivery of cargo without production of the original bill of lading. The precautions relate to: 1. The identity of the party to whom delivery is to be given The opening paragraph of the Letter of Indemnity includes a number of italicised insertion instructions in brackets which are to be completed when the Letter of Indemnity is issued. This Circular deals with the identity of the party to whom delivery is to be made which appears as: [insert name of party to whom delivery is to be made] Recommendation: As well as inserting the name of the specific party (person or company) to whom delivery is to be made, Members should request that the blank section be completed as follows: " X [name of the specific party] or to such party as you believe to be or to represent X or to be acting on behalf of X"  Reason: If a specific party only is named in the Letter of Indemnity, the Member may be assuming the burden of properly identifying that party. If the Member then mis-identifies the party, and delivers to some other party, there is then the risk that the Member is not entitled to indemnity, because he has not satisfied the pre-conditions in the Letter of Indemnity for delivery to the named party. The wording suggested above is designed to ensure so far as possible, that if the Member believes that the party to