The Ministry of Finance has cautioned Parliament against a proposal to allocate all money collected from motor third-party insurance to the Ministry of Health for treating road crash victims. The Ministry argues that creating separate funds within the government would be difficult to manage.
The call comes from Henry Musasizi, Minister of State for Finance, while appearing before the Health Committee. He responded to a proposal by committee chairperson Charles Ayume, who advocated for directing all motor third-party insurance collections towards treating road crash victims.
The Minister informed the Committee that the total collections from motor third-party insurance in the 2022/23 financial year alone amounted to Shs32 billion. This figure includes stamp duty (Shs12 billion) and VAT (Shs3 billion).
Money collected through stamp duty and VAT contributes to government revenue, which goes into the consolidated fund to finance government programs. The remaining balance stays with insurance companies to compensate individuals injured in accidents, also serving as part of their income.
“Whta we can welcome if there is inadequate funding, can we argue along these lines? Can we find ways of funding health better if there is a gap which must be closed?”Musasizi said.
The Committee defended its proposal, with Ayume citing the high cost of treating road crash victims. He noted that the daily cost of care in the Intensive Care Unit can reach Shs3 million in government facilities and Shs3.5 million in the private sector.
