Australia has begun paying out compensation for adverse reactions to Covid-19 vaccines – but lower-than-expected take-up shows the scheme is intentionally "complex" and narrowly targeted, one legal expert says.

Health Department figures show less than one-tenth of the more than 10,000 people who registered interest with the federal government's no-fault indemnity scheme prior to its launch in December have so far submitted claims.

The Covid-19 vaccine claims scheme allows people to claim a one-off payment ranging from $1000 to $20,000 for lost wages or other expenses if they suffer a bad reaction to a vaccine, provided they meet certain conditions including having spent at least one night in hospital.

As of February 9, Services Australia has received 861 claims – including death claims – under the scheme and "one claim has been paid" but 11 have already been withdrawn, a Health Department spokesman told news.com.au.

Of the 849 claims that "remain under consideration", 225 are waiting further information from applicants.