Indemnity is a means of protection against a financial loss. In the case of shipping, that financial loss comes from claims against lost or damaged parcels in unavoidable circumstances.
The letter of indemnity is a document in which the shipper indemnifies the carrier against claims that may stem from beyond the carriers control. This is common when shipping by boat, or when the carrier of the goods are taking a non-contractual risk.
When shipping by sea, letters of indemnity are sometimes used instead of a Bill of Lading. This is the case when there is not time to obtain a bill of lading, or if the goods require a change of ship to reach their destination.
In essence, an indemnity letter is the shipper of a package waiving their right to claim for loss or damage to a parcel when delivery is being made to a location that may be unsettled or dangerous.
In many cases, this is the only way a parcel can be delivered, as many couriers will not deliver to locations which may require further risk.
At Parcel Ireland, we do not require letter of indemnity. We ship to safe areas and do not take on extra risks. However, we ask you to insure your packages in case of any unexpected issues.