Updated Suite of IG-recommended Letter of Indemnity wordings 13 September 2023 No.23-010 Tweet Download PDF (4,032KB) The International Group (“IG”) Standard Form Letters of Indemnity (given in return for delivery of cargo without production of an original bill of lading and/or delivery of cargo at a port or place other than stated in the bill of lading) were last reviewed in 2010. Despite the risks involved they remain widely used (and, in some trades, it is almost the rule that cargo is delivered pursuant to a Letter of Indemnity). A number of recent English Court judgements have upheld their overall effectiveness, despite attempts by some parties to escape their contractual obligations.   Nevertheless, no documents such as these can stand still, and over recent years an IG working group has undertaken a review of the wordings, with assistance from charterer and owner representatives and from BIMCO. As a result, the Group Clubs are today publishing revised versions of the Standard Forms of Letters of Indemnity, which can be found attached to this Circular. The Clubs were particularly grateful to receive support and advice on the wordings from retired English Commercial Court judge Sir Nigel Teare.   In a departure from previous versions, the revised wordings are accompanied by explanatory notes which examine the individual changes and reflect on their rationale. These notes can also be found attached to this Circular Importantly the new wordings feature a prominent warning to remind Members that accepting a Letter of Indemnity in the relevant circumstances will prejudice a Member’s P & I cover, and liabilities will only be covered if a Club’s Board of Directors decides in its discretion that it is appropriate to do so. Use of the standard wordings does not overcome this position. In the circumstances, Members who accept Letters of Indemnity are strongly advised to ensure they are fully satisfied with the financial standing of any counterparty to a Le