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.

It says the details of compensation plans should be decided by central and local governments. For mandatory vaccination, the compensation must be paid through local fiscal budgets, while for voluntary vaccination, the vaccine license-holder must shoulder the responsibility. Commercial insurance is encouraged.

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 punitive damages to those who sell or use substandard vaccines with knowledge, causing death or serious health consequences.

It also demands the trackability of vaccination data, which include a vaccine's production information, expiry date, use date, medical worker who uses the vaccine and its recipient. The data should be retained for at least five years, it added.