Mark Whitehead 09 June 2023

Councils warned over £16m of fake pothole claims

Councils warned over £16m of fake pothole claims image
Image: Sarnia / Shutterstock.com.

Insurance experts have warned councils over a rise in fake claims for damage to vehicles caused by potholes.

Public sector insurer Zurich Municipal says the number of fraudulent claims over potholes trebled last year.

The company is warning local authorities to be vigilant as the cost of living crisis continues to drive up opportunistic fraud.

Claimants either falsely alleged that their vehicle had been damaged as a result of hitting road defects or exaggerated their claims.

Zurich says an increase in extreme weather conditions caused a rise in the number of road defects last year, leaving greater room for opportunistic fraudsters to falsely claim potholes were responsible for existing damage to their vehicles.

Overall Zurich detected 571 fraudulent claims worth £16.2m made against councils including injury caused by slipping or tripping, an 18% increase on the previous year and worth 68% more.

Most casualty frauds were public liability claims, often relating to publicly owned land.

These included slip and trips that never took place, fabrications where the injury may have been genuine but was not caused by the alleged accident, and exaggerated claims.

Scott Clayton, head of claims fraud at Zurich UK, said: 'It’s vital that local authorities take the current heightened fraud risk seriously.

'While the cost of fraud against councils ultimately impacts the public purse, there are also significant social costs, including the funding of organised crime and costs to the judicial system.'

Sign up here to receive our free daily news and jobs bulletin.

SIGN UP
For your free daily news bulletin
Highways jobs

Team Co-ordinator

Local Government & Social Care Ombudsman
£30,253 - £36,117 per annum
For over 50 years we have been the voice of the public Hybrid working – allocated to offices in Coventry or York
Recuriter: Local Government & Social Care Ombudsman

Children and Young People with Disabilities Support Worker

Essex County Council
£26284.00 - £33256.00 per annum + + 26 Days Leave & Local Gov Pension
Children and Young People with Disabilities Support WorkerPermanent, Full Time£26.284 to £33,256 per annumLocation
Recuriter: Essex County Council

Information Governance Assistant - 18 month FTC

Essex County Council
£25959.00 - £28621.00 per annum + + 26 Days Leave & Local Gov Pension
Information Governance AssistantFixed Term, Full Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Housing Officer- Income Recovery - WMF2881e

Westmorland and Furness Council
£36,363- £37,280
Following an exciting restructure of our Housing Team, we are delighted to offer several new opportunities Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Community Learning and Skills Tutor - ESOL WMF2887e

Westmorland and Furness Council
£36,363 - £37,280 (pro rata)
This is an exciting role which will involve delivering both accredited and non-accredited ESOL courses at various levels. Carlisle, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner