RE: Indemnity Insurance12 May 2023 09:27
Insurance law :-
What happens if you lose a Share/Stock Certificate?
If a Share/Stock Certificate is lost or missing, the body which issued the document (i.e. the Registrar) will issue a duplicate, but they will require that the beneficial owner of the shares/stocks signs a Letter of Indemnity which indemnifies the Registrar for any losses they may sustain as a result of the duplicate certificate being provided.
As the Registrar will know little or nothing about the financial standing of the owner, they will often require that an Insurance Company or Bank ‘join in’ the Indemnity, whereby the Bank or Insurance Company guarantee the obligations undertaken by the person applying for the duplicate.
An example for overseas stock held :-
Overseas
A company in Canada had a complicated structure and needed to have shareholdings re-registered, but the original certificates could not be found.
As the shares were valued at over £8,000,000, the process was lengthy but Aston Lark was able to negotiate with the Insurers and provide a countersigned indemnity for a premium of just over £50,000.
Google such and you will find many examples, no need to listen to clowns on this board telling you different 🤝