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Chapter

APPENDIX II
Collision Guarantee to Club from Lloyds Brokers
A. LLOYDS BROKERS TO THE ASSOCIATION:
To:
The [Name and address of Club]
Dear Sirs,
S.S./M.V
Collision with
Place
Date
In consideration of your providing bail or other security in respect of the claim of the
Owners of the ............... against the above vessel in the amount of US$ ................. in
order to avoid the arrest or detention of the above vessel or any other vessel or assets in
the same ownership or in order to secure their release from arrest, we hereby agree as
follows:

1. To pay immediately upon any liability being incurred by you or your agents in or in
connection with such bail or security, a sufficient sum to discharge such liability in full
and generally to take all such measures as may be necessary to ensure that such
liability is discharged in full without delay as soon as it be incurred and that neither
you nor your agents shall be required to make any payment whatsoever to discharge
the same, save out of funds which we shall have provided.
2. To indemnify you and hold you harmless in respect of any loss or damage which
may result from your giving such bail or security and to reimburse to you at any time
upon demand, any such sum or sums of money you may be called upon to pay
under or in connection with such bail or security.
3. To pay all your costs, expenses, charges and commission in connection with the
provision of the above bail and security. Provided at all times our liability in respect of
this Letter of Indemnity shall not exceed three quarters of US$.......... together with
costs and interests.

This Letter of Undertaking shall be governed and construed in accordance with English
Law, and shall be subject to the exclusive jurisdiction of the High Court of Justice in
London.
Service of proceedings in respect of this guarantee may be served on us at our
registered office for the time being......................................
Yours faithfully,

Director

Collision Guarantee to Club from US Insurer


To:
The [Name and address of Club]
Dear Sirs,
S.S./M.V
Collision with
Place
Date
At the request of the Assured and in consideration of your providing bail or other security
in the amount of $.............................to avoid the arrest or detention of the above vessel
or any other vessel or assets in the same ownership or in order to secure their release
from arrest, we severally and not one with the other agree to indemnify you and hold you
harmless in respect of our respective proportions of any and all loss, damages, claims,
costs and expenses which you may incur by reason of your having furnished the
aforesaid bail or other security, and we do further agree that we shall immediately pay
you, upon your demand, the amount of any claim which you may receive under and by
reason of having issued the aforesaid bail or other security.
The extent of our obligation under this indemnity shall not exceed our liability under the
Collision Liability Clause contained in the policies of insurance effective for twelve
months at.............................
We further agree, in consideration of the issuance of such bail or other security, to waive
any defence we might have under the vessels policies on Hull and Machinery and/or
increased value.
Our aggregate liability in any event shall not exceed our insured proportion of threefourths of the sum of $.............................(bond amount) plus a like proportion of threefourths of interest and costs. Our policy insures...........% of the insured value
of.............................
This agreement shall be governed by English law and, without prejudice to your right to
institute proceedings in any other jurisdiction, the High Court of Justice in London shall
have jurisdiction to hear and determine any action brought by you to enforce the
provisions hereof.
Proceedings before the High Court of Justice in London may be served upon us by being
served on.............................at their registered office for the time being.
Yours faithfully,
Director

Collision Guarantee to Club from Company Insurers (Non-US)


To:
The [Name and address of Club]
Dear Sirs,
S.S./M.V
Collision with
Place
Date
In consideration of your providing bail or other security in respect of the claim of the
Owners of the ....................... against the above vessel in the court of ....................... in
order to avoid the arrest or detention of the above vessel or any other vessel or assets in
the same ownership or in order to secure their release from arrest, we hereby undertake
to reimburse you upon your first demand such proportion of any sum which you may pay
in respect of or under such bail or other security, in excess of the amount which you
under your Rules may be liable to contribute to the claim in respect of which the bail or
other security is given, as the sum insured by us bears to the insured value provided that
we shall not be liable to reimburse the amount of any deductible which is to be borne by
the Assured under the terms of his insurance with you. Our policy insures .......% of the
insured value of.......................
This agreement shall be governed by English law and, without prejudice to your right to
institute proceedings in any other jurisdiction, the High Court of Justice in London shall
have jurisdiction to hear and determine any action brought by you to enforce the
provisions hereof.
Proceedings before the High Court of Justice in London may be served upon us by being
served on ................... at .............................. their registered office for the time being
............................
Yours faithfully,
Director

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