So I hope you had a great day today. I also had a bad day, after learning that all my insurance policies are going to incur an extra 0.5% for the flimsy excuse that the Insurance Regulatory Authority needs money to carry out training for the masses. This is the verbatim, released September 10th 2012:
The Insurance Amendment Act 2011 provides for an Insurance Training Levy (ITL) that shall be imposed on the Gross Direct Premium charged for all policies issued by Insurance companies. In consultation with the Minister of Finance, the rate of the Levy has been set at 0.5%.
The levy, which is effective 1st October 2012, shall be charged on all new policies issued, renewals and endorsements, for as long as these attract an additional premium.
How many Ugandans are of working? How many of these are gainfully employed? How many of the gainfully employed have jobs that are “recorded” in the system – as in taxable? How much tax are they paying? And we have the nerve to add some more? Yes, we are adding some more, because as soon as the IRA sent out this notice, one of my insurers sent it down to the “consumer”. So basically, as all taxes, just find a way to trickle it down to the last Ugandan. So much for a free market economy.
Section 94 A (1) of the Insurance Act 2011, (as amended), provides that each insurer shall remit this levy on the gross direct premium written to the Insurance Institute of Uganda (IIU) for purposes of training and certification of training programmes of persons licensed to carry out insurance business.
Are these guys sick OR they are simply looking for relevance? Am sure they have done the maths, and have smiled at the prospects. For a sector that is so small, for services that are so aloof I do not understand why they are even bothering. Yeah, that’s the easiest excuse – that its the very reason they need to go train ugandans. This is the very content that was missing in those Patriotism Classes.
Investing in the training and development of human resource capacity is a move to provide outstanding labour market intelligence which will enable entrepreneurs and the general public to make the best choices for themselves.
Outstanding labour market intelligence? Hmmmm. Has anything in Ugandan Training ever been outstanding? UPE, USE, Universities, Patriotism Classes, and the newly launched “Skilling Uganda”…Outstanding Intelligence? Seriously?
The resources to be generated under the levy will empower the Insurance Institute of Uganda to develop relevant training programmes aimed at increasing workforce skills and ultimately better service and product provision to the clients.
My Insurance Provider send this along, which i assumed was interpretation:
The training levy will be remitted to the Insurance regulatory authority for the Insurance Institute of Uganda (IIU) for purposes of training and certification of training programmes of persons licensed to carry out insurance business.
Ok, so the IRA is going to establish a training centre? And then walk over to all these insurance companies and tell them that instead of them running internal capacity building programs, they can just send them to the new IRA School. And once they are done, they will then go around to every sub-county, and carry out patriotism-style classes enmass, to educate the average ugandan about how insurance works.
You know what, i rest my case.