No-Fault Compensation
Concept and Legal Framework
A no-fault compensation (NFC) scheme is a mechanism under which affected individuals receive compensation without needing to establish negligence or fault on the part of the manufacturer, government, or healthcare provider. This is distinct from tort-based liability, which requires proof of negligence. No-fault schemes are common globally for vaccine injury compensation: the US National Childhood Vaccine Injury Act (1986) established the Vaccine Injury Compensation Program (VICP) — a no-fault administrative system funded by an excise tax on vaccines. India currently lacks a statutory no-fault vaccine injury compensation framework, unlike countries such as the UK, Germany, and New Zealand.
- No-fault principle: Compensation awarded based on causation between vaccine and injury — not on proof of negligence
- Distinction from tort law: Negligence (fault) → plaintiff must prove breach of duty of care; no-fault → causal link sufficient
- US VICP (1986): Covers injuries from vaccines on the Recommended Childhood Immunization Schedule; funded by vaccine excise tax (~$0.75 per dose)
- UK Vaccine Damage Payment Act, 1979: Lump-sum payment (£120,000) for severe vaccine injury
- India: No statutory scheme exists; petitioners must file civil suits or writ petitions — this SC direction mandates creating one
- Supreme Court's formulation: Policy will not constitute admission of liability; other legal remedies remain available
● Tracked since March 10, 2026 · last seen April 16, 2026 · updates as the daily brief publishes