Indemnity Bond Template (India) — Free Format
An indemnity bond is a written promise by one person (the indemnifier) to make good a loss that another person (the indemnity holder) may suffer if they act on the indemnifier's request, for example by issuing a duplicate document. It is common for lost certificates, passbooks, share certificates and vehicle papers.
Stamp, registration and e-sign at a glance
The three things to settle before anyone signs this agreement in India.
Payable under the stamp law of the state where it is signed; rates vary by state. Unstamped, it cannot be used as evidence until duty and penalty are paid. Duty on an indemnity bond varies by state and often depends on the amount indemnified; institutions commonly specify the stamp paper value.
Check your state's rateRegistration is not required.
This agreement can be signed electronically with Aadhaar eSign or a DSC under the Information Technology Act, 2000. Electronic signatures listed in the Act's Second Schedule carry a presumption of reliability. Some banks, companies and authorities still insist on a hand-signed, stamped and notarised original.
What cannot be e-signedWhat is a Indemnity Bond?
Section 124 of the Indian Contract Act, 1872 defines a contract of indemnity as a promise to save the other party from loss caused to them by the promisor's own conduct or by the conduct of any other person. Under Section 125, the indemnity holder who is sued can recover damages, costs and amounts paid under a compromise made with the promisor's authority. A bond commonly states the facts (for example that the original was lost and not misused), the request to the institution, and the amount or scope of the promise. Banks, RTOs, companies and registrars often prescribe their own format and surety requirements, so check before drafting.
When to use it
- Applying for a duplicate share certificate, mark sheet, passbook, fixed deposit receipt or insurance policy
- Asking a bank or company to act on an instruction without the original document
- Getting a duplicate registration certificate or other paper from an authority
- Securing a business partner or employer against loss from a specific act
Key clauses checklist
Make sure your draft covers each of these. Linked clauses open a sample wording with drafting tips.
- Parties and background facts
- Request made to the indemnity holder
- Promise to indemnify (scope and amount) Sample clause
- Declaration that the original is lost and not misused
- Surety or guarantor (if required)
- Duration and release
- Stamp duty Sample clause
- Governing law and jurisdiction Sample clause
Indian law notes
What an indemnity covers
Section 124 of the Contract Act covers loss caused by the promisor's own conduct or by a third person's conduct. A broader indemnity can still be enforced as a general contract. Under Section 125 the indemnity holder can recover damages for any suit brought against them in the matter, costs and sums paid under a compromise. An indemnity for an unlawful act is void under Section 23.
Indemnity, guarantee and affidavit
An indemnity usually involves two parties and promises to compensate loss; a guarantee involves three and secures another's debt or default (see the letter of guarantee template). Many offices ask for an indemnity bond together with an affidavit of loss. A false statement in the affidavit is an offence under Sections 227 to 229 of the Bharatiya Nyaya Sanhita, 2023.
Stamp paper and surety
Stamp duty on an indemnity bond is set by each state and depends on whether it is an indemnity for a stated amount. Institutions often ask for the bond on stamp paper of a stated value and, for large amounts, for a surety or a bank guarantee. Follow the requirement of the institution that will rely on it.
INDEMNITY BOND This Indemnity Bond is executed at [City] on [Date] by: [Indemnifier Name], son/daughter/spouse of [Name], aged [Age] years, residing at [Address], holding [identity proof type and number] (the "Indemnifier"), IN FAVOUR OF [Indemnity Holder Name], having its office at [Address] (the "Indemnity Holder"). WHEREAS: (A) The Indemnifier was the holder of [describe document, e.g. share certificate no. [ ] / passbook no. [ ] / original title or registration certificate no. [ ]] (the "Original Document"). (B) The Original Document has been [lost / misplaced / destroyed] and the Indemnifier has not been able to trace it despite diligent search. A copy of the [FIR / complaint / affidavit of loss] dated [Date] is attached. (C) At the request of the Indemnifier, the Indemnity Holder has agreed to [issue a duplicate / act without the Original Document] on the Indemnifier's undertaking below. NOW THIS BOND WITNESSETH AS FOLLOWS: 1. DECLARATION The Indemnifier declares that the Original Document has not been pledged, sold, assigned or otherwise dealt with, and that no other person has any claim over it. 2. INDEMNITY The Indemnifier shall indemnify and keep the Indemnity Holder indemnified against all loss, damage, claim, costs and expenses (including reasonable legal fees) that the Indemnity Holder may suffer because it has acted on the request of the Indemnifier, including any claim by a person who finds or obtains the Original Document. 3. RETURN OF ORIGINAL If the Original Document is found, the Indemnifier shall return it to the Indemnity Holder for cancellation. 4. SURETY [If applicable: [Surety Name], residing at [Address], stands surety for the Indemnifier and is jointly and severally liable under this Bond.] 5. DURATION This Bond shall remain in force until [Date / the Indemnity Holder confirms in writing that the risk has ended]. 6. GOVERNING LAW This Bond is governed by the laws of India and the courts at [City] have jurisdiction. IN WITNESS WHEREOF the Indemnifier has signed this Bond on the date first written above. Indemnifier: ____________ Name: [Name] Surety (if any): ____________ Name: [Name] Witnesses: 1. Name: ____________ Address: ____________ Signature: ____________ 2. Name: ____________ Address: ____________ Signature: ____________
Replace every [placeholder] and delete options that do not apply. Check the stamp duty in your state
How to execute it
From blank template to a signed, stamped and stored contract.
Ask the institution for its prescribed indemnity bond format, the stamp paper value and whether a surety is needed.
File an FIR or lodge a complaint of loss where required, and gather identity proof of the indemnifier (and surety).
Describe the lost or relevant document exactly: number, date and issuer.
Print the bond on the required stamp paper and sign it before two witnesses, with notarisation if the institution asks.
Submit the bond with the affidavit of loss, application and fee.
If the original turns up, return it to the institution promptly.
Frequently asked questions
What is an indemnity bond?
A written promise to compensate another person for a loss that may arise from acting on your request. It is based on Section 124 of the Indian Contract Act, 1872.
Is an indemnity bond the same as an affidavit?
No. An affidavit is a sworn statement of facts; an indemnity bond is a promise to compensate loss. Institutions often ask for both when a document is lost.
Do I need stamp paper for an indemnity bond?
Usually yes. Stamp duty on a bond varies by state, and the institution often specifies the value of stamp paper it will accept.
Does an indemnity bond need a surety?
Only if the institution requires it, usually where the amount at risk is large. The surety is liable jointly with the indemnifier.
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