SC asks Centre to frame ‘no-fault compensation policy’ for COVID-19 vaccine adverse effects

New Delhi: The Supreme Court on Tuesday directed the Union of India, through the Ministry of Health and Family Welfare, to frame a no-fault compensation policy for individuals who suffer serious adverse events following COVID-19 vaccination.

A Bench of Justice Vikram Nath and Justice Sandeep Mehta issued the order while clarifying that the existing mechanism for monitoring Adverse Events Following Immunization (AEFI) shall continue to operate. The Court further directed that relevant data regarding such side-effects should be periodically placed in the public domain, in accordance with the observations made earlier in the 2021 judgment in the Dr Jacob Puliyel case.

The apex court also clarified that no separate court-appointed expert body is required for examining vaccine-related adverse events, noting that the existing surveillance and monitoring framework will continue.

Importantly, the Bench stressed that the formulation of a no-fault compensation framework shall not be construed as an admission of liability or fault on the part of the Union Government or any other authority. It also observed that the direction to frame such a policy will not preclude affected persons from pursuing any other remedies available under law.

The Court delivered the judgment while considering a writ petition filed by Rachna Gangu and Venugopalan Govindan, who alleged that their daughters died due to adverse effects caused by the Covid vaccine.

The petitioners sought compensation from the Union Government for the deaths allegedly caused by the Covid-19 vaccines. They also appealed to constitute an expert committee to inquire into the adverse effects of the COVID-19 vaccination

Meanwhile, the Union Government filed another petition against an interim order passed by the Kerala High Court in a petition filed by Sayeeda KA (who alleged that her husband died due to vaccination) to formulate a policy for compensation.

In 2022, the Union Government had filed a counter-affidavit in the matter, arguing that it was not liable to compensate as vaccination was a voluntary act undertaken by persons who took an informed decision on the basis of the risks notified. After extensive arguments on November 13, 2025, Justice Nath had said that the court would consider all pleas and decide on the amendment application (seeking an independent inquiry into vaccine-related adverse events and alleging systemic suppression of data during the COVID-19 vaccination drive) as well as the larger issues raised.

What is a no-fault compensation policy?
No-fault compensation is a system which guarantees compensation for losses—such as medical expenses or lost wages—without having to prove who was responsible for the accident or injury. The mechanism is designed to simplify and speed up the compensation process by eliminating prolonged legal disputes over liability. It is commonly applied in areas such as motor vehicle insurance, medical injury compensation schemes, and vaccine injury programmes.

(With Live Law inputs)