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

Catering Assistant

North Yorkshire Council
£12.65 per hour
Full uniform will be provided including safety footwear. Bedale, North Yorkshire
Recuriter: North Yorkshire Council

LGV Driver

North Yorkshire Council
£34,094 - £37,225 per annum
Would you like a rewarding role that allows you to work outside in some of the most scenic places in the country? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Facilities Assistant

Essex County Council
Up to £25081.00 per annum
Facilities AssistantFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Lead Commissioning Officer - Children & Families

Essex County Council
£42452.0000 - £49943.0000 per annum
Lead Commissioning Officer - Children & FamiliesPermanent, Full Time£42,452 to £49,943 per annum Location
Recuriter: Essex County Council

Facilities Assistant

Essex County Council
Up to £25081.00 per annum
Facilities AssistantFixed Term, Full Time£25,081 Per annum Location
Recuriter: Essex County Council
Linkedin Banner