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Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
Indemnity issues hold up U.S. vaccine donation:
Context:
Vaccine donations from the US are being held up by regulatory issues over indemnity.
Background:
The U.S. announced the donation of 80 million doses of American-made COVID-19 vaccines to dozens of countries including India.
What is an indemnity clause?
In simple terms, indemnity means security against a loss or other financial stress.
- In legal terms, it means a contractual obligation of one party to compensate another party due to the acts of the former.
- The clause is commonly used in insurance contracts.
In the case of India, if the government gives an indemnity to foreign vaccine makers to roll out their vaccine in the country, the government, and not the vaccine maker, would be liable to compensate any citizen who claims to have side effects after taking the vaccine jab.
Are there any exceptions to indemnification?
There are a number of common exceptions to indemnification.
An indemnification provision may exclude indemnification for claims or losses that result from the indemnified party’s:
- Negligence or gross negligence.
- Improper use of the products.
- Bad faith failure to comply with its obligations in the agreement.
Insta Curious:
Did you know that The WHO has launched a no fault compensation programme for Covid-19 vaccines through the Covax alliance? Read here,
InstaLinks:
Prelims Link:
- What is indemnity clause?
- Where it is oftenly used?
- Benefits of the clause.
- Important Vaccines being imported into India.
Mains Link:
Discuss the significance of the Indemnity clause.
Sources: the Hindu.
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