Read more about Govts or manufacturers, who is on the hook if Covid-19 vaccines go wrong? on Business Standard. Policy makers in developing nations may not have a choice but to take what they can get – easily, cheaply and quickly
The Covid-19 vaccines are here and distribution has begun. But what if something goes wrong? Whether it’s a loss of income, hefty medical bills or other serious adverse effects, someone has to pick up the tab. In the past, so-called liability shields have given companies cover to produce effective treatments quickly without legal exposure. But it’s a risky endeavour for nations to absorb responsibility for highly novel products, developed and licensed at lightning speed. Who will be responsible if there are serious adverse side events? No insurer will underwrite the risk; the burden of compensation will fall on states or, in the case of poor countries, on Covax, a global initiative to ensure equitable distribution. On current estimates, Covax can meet only a fifth of global demand by the end of the year. So countries that are striking direct agreements with producers will still have to worry about potential tort claims, which seek civil remedies. The virus may stick around even after universal immunisation, with mutant strains creating an enduring market for jabs long after Covid has ceased to be a health emergency. Manufacturers, distributors and other entities in the US “are very likely to find their Covid-19 products and services moving across borders”, according to RAND Corporation researchers.
