Pfizer COVID-19 vaccine indemnity: Everything about the dispute between the U.S. drugmaker and India

May 25, 2021, 14:48 IST

Pfizer and India are at an impasse over the Indemnity demand by the U.S. drugmaker. To date, India has not provided any manufacturer of a COVID-19 vaccine indemnity against the costs of compensation for any severe side effects.

Pfizer COVID-19 vaccine indemnity
Pfizer COVID-19 vaccine indemnity

If you experience severe side effects after being administered the COVID-19 vaccine, you cannot sue Pfizer or Moderna in the U.S. as they have been granted immunity from liability. You cannot sue the U.S. government for damages either. The protection lasts until 2024. 

mRNA based Pfizer, which enjoys 'immunity from liability in the U.S., has demanded COVID-19 vaccine indemnity in India. Since then, both Pfizer and the Government of India are at an impasse over the Indemnity demand by the U.S. drugmaker. To date, India has not provided any manufacturer of a COVID-19 vaccine indemnity against the costs of compensation for any severe side effects.

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An Indian government source was quoted by Reuters as saying, "The whole problem with Pfizer is the indemnity bond. Why should we sign it? If something happens, a patient dies, we will not be able to question them (Pfizer). If somebody challenges in a court of law, the central government will be responsible for everything, not the company."

Indemnity

As per Indian law, an indemnity is a contract by which one party promises to save the other from loss caused to it by the contract of the promisor itself, or by the conduct of any other person. 

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What has happened so far?

Amid the shortage of vaccines, as the COVID-19 cases soar, India pledged to fast-track approvals for overseas vaccine makers such as Pfizer, and Moderna. However, none of them has since sought permission from the Drugs Controller General of India (DCGI) to sell their vaccine in one of the world's biggest markets. 

In February 2021, the first drugmaker to apply for emergency use approval of its COVID-19 vaccine candidate in India, Pfizer, withdrew its application after the country insisted on a local trial. 

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As per sources, Pfizer has been consistent in its position on indemnity and is not planning to change its approach for a deal with India. 

Pfizer spokeswoman was quoted by Reuters as saying, "The company is still in talks with India on a deal and they have not reached an impasse." She further added, "Pfizer remains hopeful about reaching an agreement."

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On 4 May 2021, Chief Executive of Pfizer Albert Bourla stated that was hopeful that the government would change its policy of local trials and that a path to delivering the drugmaker’s shots in India could be found.

External Affairs Minister Dr. S. Jaishankar arrived in the U.S. to discuss Covid-related cooperation with officials. During his visit, India is looking forward to vaccine procurement and subsequently, vaccine production.

It is to be noted that the vaccines which are currently in use in India, developed by AstraZeneca, Russia’s Sputnik V and Bharat Biotech in collaboration with state-run ICMR, have completed the small-scale safety trials.

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Arfa Javaid
Arfa Javaid

Content Writer

Arfa Javaid is an academic content writer with 2+ years of experience in in the writing and editing industry. She is a Blogger, Youtuber and a published writer at YourQuote, Nojoto, UC News, NewsDog, and writers on competitive test preparation topics at jagranjosh.com

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