indemnity definition

indemnity

Undertaking given to compensate for (or to provide protection against) injury, loss, incurred penalties, or from a contingent liability. A shipping company, for example, will ask for a bank's indemnity for releasing a shipment to a consignee who has lost original shipping documents. The bank in turn will require the consignee to sign a counter-indemnity before issuing its indemnity to the shipping company. This way the consignee gets the release of shipment in completion of a transaction, and both the shipping company and the bank are protected in case some dispute arises out of that transaction. See also letter of indemnity.

indemnity is in the Agreements & Contracts, Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.

indemnity appears in the definitions of the following terms: contingent liability, insurable value, contingent business interruption insurance, stop payment order, insurance policy and financial guarantee

indemnity appears in the other terms: triple indemnity policy, shipper's indemnity, letter of indemnity, double indemnity policy, bond of indemnity, indemnity insurance, indemnity clause, counter indemnity, indemnity principle, implied indemnity and

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