The demand for vaccine indemnity from countries & the terms of COVAX


Vaccine Indemnity and The COVAX Facility

Some manufacturers have demanded indemnity against the introduction of vaccines, from countries. We wanted to know how this ties in with The COVAX Facility’s no-fault compensation fund. Here are some responses from a spokesperson from Gavi — The Vaccine Alliance. (See our earlier story on these issues)

[GHF] 1. Why did Facility leave the question of indemnity to individual countries participating in the Facility?

The foundational goal of COVAX is global equitable access to COVID-19 vaccines, which includes working to ensure that ability to pay is not a barrier to access. As we strive towards this goal at an unprecedented scale and speed, the issue of liability is one of many complex problems for which the world had to design new solutions in the midst of crisis. COVAX therefore worked urgently with all stakeholders — including AMC-eligible economies, procurement partners, and industry — towards establishing a comprehensive solution that addresses the need for indemnification while ensuring high risk individuals in AMC-eligible economies could benefit from rapid access to life-saving vaccines..

[GHF] 2. How does this fit with the no-fault compensation mechanism established by COVAX.

This work to design a solution that would support countries and remove barriers to access included establishing a first-of-its-kind global no-fault compensation scheme to support 92 AMC-eligible economies. Guiding principles for this work were that this final solution would come online alongside first deliveries to AMC participants, was equitable to all stakeholders, implementable, and would not undermine confidence in vaccines. The No-Fault Compensation (NFC) mechanism is a key benefit available to AMC participants procuring doses through COVAX as compared to via bilateral deals.

[GHF] 3. Have there been any claims under this mechanism already?

(We were asked to get in touch with WHO on this. We did not receive a reply by the time this edition was released)

4. In terms of how this works, did COVAX buy an insurance policy from Chubb in order to cater to potential claims from countries?

NFC funding, paid by donor funding through a levy charged on each dose supported by the Gavi COVAX AMC, will cover the costs of the administrator, the Fund and the layer of insurance to be provided by Chubb. Following a comprehensive and competitive review process, ESIS — a wholly owned subsidiary of Chubb with more than 30 years of international experience — was selected as lead insurer for the program, in accordance with WHO procurement rules and procedures.

Image Credit: Photo by Lalesh Aldarwish from Pexels






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