Indemnity Bond Format Generator

By the MuftTools.in teamUpdated October 2026How we checkSources: Indian Contract Act, 1872, sections 124 to 128 (India Code)

What an indemnity bond does

An indemnity bond is a promise to make good any loss that someone suffers because they did what you asked. A bank that pays a deceased depositor's money to the family without a succession certificate, a company that issues a duplicate share certificate, or an office that releases a payment without an original bill is taking a risk: someone else might turn up later with a claim. The bond says that if that happens, you will pay.

The idea comes from section 124 of the Indian Contract Act, 1872, which defines a contract of indemnity as one by which one party promises to save the other from loss caused by the conduct of the promisor or of any other person. Section 125 lets the person indemnified recover damages, costs and sums paid under a reasonable compromise in a suit covered by the promise.

Purposes included

Purpose	Typical case	What the bond records
Deceased person's account	Legal heirs claiming a savings account, fixed deposit or other balance without a succession certificate	Name and date of death, that there is no will, the accounts, the heirs and their relation, any heirs who have given a no-objection, and who is to be paid
Lost document	A lost FD receipt, share certificate, passbook, demand draft or allotment letter	The document, number, date and amount, when it was lost, the police report, and whether you want a duplicate or payment without the original
Release of payment	A contractor's final bill, a refund or a dues settlement released without a missing paper	The amount in figures and words, what it is for, and why an indemnity is needed
Other purpose	For example a society transferring a flat without the original share certificate	What the other side is doing at your request

How to use it

1. Choose the purpose.
2. Say who the bond is for: the bank, company, society or department, with branch and city, and how it is referred to in the bond.
3. Add the people signing: up to four. For a deceased person's account, add every legal heir who is signing and their relation to the deceased.
4. Fill in the details for the purpose you chose.
5. Add sureties if the bank asks for them: none, one or two, with name, relation and address.
6. Choose witnesses only, or witnesses and a notary, set the stamp-paper space, check the preview and download.

What the bond promises

• In return for the bank or company doing what you asked, you will indemnify it against all claims, losses, damages, costs and expenses arising from it.
• If anyone makes a claim in the matter, you will pay on demand whatever it has to pay, with costs.
• A declaration suited to the purpose: that you are the legal heirs and there is no will; that you haven't pledged or sold the lost document and will return it if found; or that you are entitled to the payment.
• Where several people or sureties sign, their liability is joint and several, so the full amount can be recovered from any of them.
• The bond stays in force until the bank or company is fully discharged, and binds your heirs and legal representatives.

Sureties

A surety is a person who guarantees the bond. Section 126 of the Indian Contract Act calls the person giving a guarantee the "surety", and section 128 makes the surety's liability as large as the principal debtor's unless the contract says otherwise. A surety can therefore be asked to pay the whole amount. Banks often want one or two sureties of standing, and some ask that sureties are not related to the claimants. Ask before you pick them.

Stamp paper and notarisation

Indemnity bonds are generally executed on non-judicial stamp paper. The value is set by each state's stamp law and changes from time to time, so this tool doesn't print an amount. Ask the bank, a notary or the stamp vendor, then print the bond on that paper or attach the e-stamp certificate. Use the blank space option to keep the printed stamp area clear. If notarisation is required, sign in front of the notary, who adds a seal in the "Before me" block.

Tips

• Always ask first whether the bank or company has its own format. If it does, use it; many do, and they often have different forms for different amounts.
• Copy account and certificate numbers carefully from a statement or letter. A wrong digit can get the bond rejected.
• Attach what the bank asks for, such as the death certificate, ID proof of the heirs and sureties, a police report for a lost document, and no-objection letters from other heirs.
• Witnesses and sureties should be different people.
• Keep a photocopy of the signed bond.

This is a draft format, not legal advice. Stamp duty differs by state, so check with a lawyer or notary before you sign. Nothing you type leaves your browser: no upload, no sign-up and no watermark.