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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Director of Adult Health and Social Care

Leeds City Council
up to £185,237
Drive Change. Shape Lives. Lead Boldly. Leeds, West Yorkshire
Recuriter: Leeds City Council

SEND Caseworker

Nottingham City Council
£46,142 - £49,282
Are you passionate about making a difference to the lives of children and young people with Special Educational Needs and Disabilities (SEND)? Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Head of Children and Young People Services

Neath Port Talbot County Borough Council
£89,565 - £98,298
We are looking for an inspiring and experienced leader who is passionate about improving outcomes for children, young people and their families Neath Port Talbot (Castell-nedd Port Talbot)
Recuriter: Neath Port Talbot County Borough Council

Supported Accommodation Worker

Durham County Council
Grade 7, £31,015 - £34,811 per annum
Be the Person Who Helps a Young Person Believe in Their Future. Every young person deserves someone who believes in them. Someone who listens when l Durham
Recuriter: Durham County Council
Linkedin Banner