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

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Commercial Lawyer - Harlow District Council

Essex County Council
Up to £60.0000 per hour
Commercial Lawyer - Harlow District Council Location, HarlowFull time, Temporary 6 Months £46.78 PAYE / £60.00 UmbrellaClosing Date
Recuriter: Essex County Council

Principal Lawyer - Planning and Highways

Kirklees Metropolitan Council
£51,356 to £56,494 + £3000 Market Rate Supplement
Do you want to make a difference to local people? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Team Manager - Children Looked After

London Borough of Richmond upon Thames and London Borough of Wandsworth
Up to £62,451 per annum
Team ManagerChildren Looked After S... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner