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November
16
2022

Government Clarifies Vaccine Injured Can Sue Manufacturers Despite Indemnity
Will Jones

The Government has responded to a petition calling on it to “remove indemnity from the manufacturers of COVID-19 vaccines, to allow individuals to pursue claims for compensation against them” by clarifying that “individuals’ right to sue the producers of the vaccine” has not been removed.

Instead, the indemnity “determines who will pay the manufacturer’s losses arising from such a claim”. This means the vaccine injured can sue the manufacturers, though the Government will foot the bill.

The Government’s response states:

The Government’s response states:

In August 2021, amendments to the Human Medicines Regulations 2012 were made to support the rollout of COVID-19 vaccines. Although the legislation provides partial immunity from civil liability for vaccines supplied under emergency authorisation, it preserves individuals’ right to sue the producers of the vaccine under Part 1 of the Consumer Protection Act 1987. This provides an important level of protection if the safety of the product is not such as people are generally entitled to expect, taking all circumstances into account, and if that defect causes personal injury.

The Government adds that, as far as the Vaccine Damage Payment Scheme (VDPS) is concerned, “the figure of £120,000 is a one-off lump-sum payment, not designed to cover lifetime costs for those impacted”.

“A successful claim to VDPS does not stop an individual from bringing litigation against the vaccine manufacturer for damages as the VDPS is not a compensation scheme,” it adds.

The Government’s full response to the petition is as follows.

The Government cannot comment on the terms on which COVID-19 vaccines were supplied as these are confidential.

Even though the COVID-19 vaccines have been developed at pace, at no point and at no stage of development has safety been bypassed. These vaccines have satisfied, in full, all the necessary requirements for safety, effectiveness and quality.

The speed of the vaccine rollout put the U.K. in a strong position. The U.K. was the first country in the world to grant a temporary authorisation for and deploy the Pfizer and Oxford/AstraZeneca COVID-19 vaccines. The U.K. was the first major European economy and first G20 member to vaccinate 50% of its population with at least one dose, and to provide boosters to 50% of the population.

The benefits of the COVID-19 vaccines rollout have been demonstrated in terms of public health and allowing the gradual and safe removal of restrictions on everyday life over the past 18 months.

In general, indemnities given to manufacturers do not prevent individuals from pursuing a legal claim against a manufacturer for compensation. Rather, the indemnity determines who will pay the manufacturer’s losses arising from such a claim.

Although the details of indemnity schemes are commercially confidential, we understand that many governments entered into such arrangements to ensure ready access to COVID-19 vaccines.

In August 2021, amendments to the Human Medicines Regulations 2012 were made to support the rollout of COVID-19 vaccines. Although the legislation provides partial immunity from civil liability for vaccines supplied under emergency authorisation, it preserves individuals’ right to sue the producers of the vaccine under Part 1 of the Consumer Protection Act 1987. This provides an important level of protection if the safety of the product is not such as people are generally entitled to expect, taking all circumstances into account, and if that defect causes personal injury.

The Vaccine Damage Payment Scheme (VDPS) is a no-fault scheme that provides a one-off, tax-free payment of £120,000 to claimants who have been found, on the balance of probabilities, to have been seriously disabled as a result of a vaccine for a disease listed in the Vaccine Damage Payment Act 1979. The figure of £120,000 is a one-off lump-sum payment, not designed to cover lifetime costs for those impacted.

It is in addition to the Government support package to those with a disability or long-term health condition, including Statutory Sick Pay, Universal Credit, Employment and Support Allowance, Attendance Allowance, and Personal Independence Payments.

A successful claim to VDPS does not stop an individual from bringing litigation against the vaccine manufacturer for damages as the VDPS is not a compensation scheme.

This means that, notwithstanding the indemnity, the vaccine injured can bring action for damages against the vaccine manufacturers, albeit with taxpayers on the hook for the bill.

 

Editor-in-Chief, Independent Agent

Independent Agent (IA) is the authoritative source of information for professionals who sell insurance for independent agencies. IA Magazine primarily serves property-casualty independent insurance agents and brokers and is a benefit of membership of the Independent Insurance Agents & Brokers of America. IA gives independent insurance agents access to the critical trends, analysis and tools they need to sell efficiently and effectively. IA offers an unparalleled combination of research, experts and analysis to help lead agencies to profitability and competitive strength

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