BEIJING - China plans to introduce a compensation system for people who report adverse events linked to preventive vaccinations, according to a draft law under review at the top legislature.

Compensation must be provided in cases of an adverse event leading to death, serious disability or organ injury during or after vaccination, or when the possibility of an adverse event cannot be excluded, the draft says.

The draft vaccine administration law was submitted Saturday to the Standing Committee of the National People's Congress for the second reading.

The draft increases penalties on illegal activities, such as manufacturing and selling fake or substandard vaccines, and stipulates a punitive compensation to those who sell or use substandard vaccines with knowledge, causing death or serious health consequences.