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HomeNewsGlobal NewsNo-fault compensation programme for COVID-19 vaccines is a world first

No-fault compensation programme for COVID-19 vaccines is a world first

GENEVA, Switzerland — The World Health Organization (WHO) and Chubb Limited through ESIS Inc., a Chubb company, signed an agreement on behalf of the COVAX Facility on February 17, 2021, for the administration of a no-fault compensation programme for the 92 low- and middle-income countries and economies eligible for support via the Gavi COVAX Advance Market Commitment (AMC) of the COVAX Facility.

As the first and only vaccine injury compensation mechanism operating on an international scale, the programme will offer eligible individuals in AMC-eligible countries and economies a fast, fair, robust and transparent process to receive compensation for rare but serious adverse events associated with COVAX-distributed vaccines until 30 June 2022.

By providing a no-fault lump-sum compensation in full and final settlement of any claims, the COVAX programme aims to significantly reduce the need for recourse to the law courts, a potentially lengthy and costly process.

ESIS, as the independent administrator of the programme, was selected in accordance with WHO’s procurement rules and procedures, and charges no fees to applicants.

All vaccines procured or distributed through the COVAX Facility receive regulatory approval or an emergency use authorization to confirm their safety and efficacy.

But, as with all medicines, even vaccines that are approved for general use may, in rare cases, cause serious adverse reactions.

“The unprecedented nature of the COVID-19 pandemic has been matched by the largest-ever rollout of new vaccines under the ACT-Accelerator and its vaccines pillar, COVAX. This no-fault compensation mechanism helps to ensure that people in AMC-eligible countries and economies can benefit from the cutting-edge science that has delivered COVID-19 vaccines in record time,” said Dr Tedros Adhanom Ghebreyesus, WHO director-general. “We are pleased to be collaborating with Chubb, which has the capabilities to support the COVAX facility through its global network and claims handling ability. WHO’s agreement with Chubb offers further protection and confidence in the life-saving power of vaccines.”

“The No-Fault Compensation fund is a massive boost for COVAX’s goal of equitable global access to vaccines: by providing a robust, transparent and independent mechanism to settle serious adverse events it helps those in countries who might have such effects, manufacturers to roll out vaccines to countries faster, and is a key benefit for lower-income governments procuring vaccines through the Gavi COVAX AMC,” said Dr Seth Berkley, chief executive officer of Gavi.

The COVAX no-fault compensation programme will be operationalized through its web portal (www.covaxclaims.com) by March 31, 2021, which will include resources such as the programme’s protocol, Frequently Asked Questions (FAQs) and information on how to submit an application.

Eligible individuals may apply for compensation under the programme once the portal becomes operational, even if a COVAX-distributed vaccine is administered to them before  March 31, 2021.

The programme is financed initially through Gavi COVAX AMC donor funding, calculated as a levy charged on all doses of COVID-19 vaccines distributed through the COVAX Facility to the AMC eligible economies until June 30, 2022.

WHO is working with Chubb to secure insurance coverage for the programme with Chubb as lead insurer.

“Chubb is proud and honoured to work with the World Health Organization and its partners on the critically important COVAX programme,” said Evan G. Greenberg, chairman and chief executive officer of Chubb. “The COVID-19 pandemic has had a devastating effect on people and economies around the globe, and the development and deployment of efficacious vaccines is a crucial step toward ending this crisis. However, a vaccination strategy is only as effective as the number of people it reaches, which is why the COVAX facility is so critical. Access to the protection offered by a vaccine should not be limited or restricted. All countries, regardless of income levels, should have equal access to these life-saving vaccines.”

The delivery of COVID-19 vaccines during 2021 will be the fastest and largest global deployment of novel vaccines in history. The COVAX Facility aims, by the end of 2021, to deliver at least 2 billion doses of safe, effective and quality-assured vaccines to all participating countries, including at least 1.3 billion doses to the 92 AMC-eligible countries and economies, at the same time as wealthier nations.

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