Insurance Age

Fraud costs councils

Local authorities are having to pay out on average #250,000 forfraudulent claims each year - which add up to a combined cost of #1bn inpersonal injuries and accidents that never happened.

Research by Alarm, the local-authority risk managers' association, hasfound that the #1bn figure covers only the cost of actual payouts, anddoes not take into account the costs of investigation and defence - whichpush the figure up to several billion pounds' worth of money that could bespent on improving pub