If Covid-19 vaccines cause side-effects, who pays: makers or governments?

Procurement contracts for vaccines have forced governments to consider whether they should give legal indemnity to vaccine makers

Some countries have enacted laws to clarify who is liable when vaccines cause adverse effects, but the pandemic poses a greater challenge

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The risk of compensation claims for any side-effects caused by vaccines means countries and vaccine makers must establish who is liable. Photo: AFP

Published: 10:00pm, 26 Dec 2020Updated: 10:39pm, 26 Dec 2020

As the most ambitious inoculation initiative in history begins in an effort to combat the coronavirus pandemic, compensation for potential side-effects is a key issue as governments try to strike a balance between obtaining supplies of vaccines and protecting the public.

The dismay vented by Brazilian President Jair Bolsonaro over a vaccine maker’s refusal to be held responsible for potential side-effects revealed the tensions behind negotiations over nations’ vaccine procurement, with terms on indemnification being a significant battleground.

Many developed countries are willing to take on the risks and indemnify vaccine makers, to ensure they secure a share of the limited supply. The British and Australian governments have agreed to provide legal indemnity to Pfizer.

The European Union in September struck a deal with AstraZeneca, agreeing that its member states’ governments would be liable for claims above an agreed limit regarding side-effects from vaccines, in exchange for a cheaper price per dose. The vaccine maker initially asked for full indemnity, according to Reuters.

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But there is far less room for compromise for poorer nations, potentially widening the gap between the global north and south in terms of vaccine accessibility.

If Covid-19 vaccines cause side-effects, who pays: makers or governments?

Procurement contracts for vaccines have forced governments to consider whether they should give legal indemnity to vaccine makers Some countries have enacted laws to clarify who is liable when vaccines cause adverse effects, but the pandemic poses a greater challenge

Procurement contracts for vaccines have forced governments to consider whether they should give legal indemnity to vaccine makers

Some countries have enacted laws to clarify who is liable when vaccines cause adverse effects, but the pandemic poses a greater challenge