Hotline to Combat Bogus Claims

A telephone line for people to report fraudsters making bogus personal injury claims against Merthyr Council has been set up.

The 24-hour Fraudline is encouraging people to report those they suspect of making false claims. The local authority pays out £500,000 each year in personal injury costs despite 74% of claims being successfully defended.

The most common claims concern injuries due to poor road conditions. Local authorities across Wales spent £20m in 2003 on road-related compensation, mostly on people's "slip-and-trip" injuries. This figure is expected to rise to £30m annually within three years.

But a BBC Wales Week In Week Out investigation in February discovered that many of the councils believe up to 70% of claims may be fraudulent.

Many of the bogus claims made involve a false set of circumstances, such as the time or place of an accident as well as the claimant inventing symptoms or exaggerating the severity.

Merthyr council has said that insurance claims for damages due to highway conditions are a "particular problem within Merthyr Tydfil over recent years" and on average they defend 175 claims every year.

As well as the Fraudline, other initiatives to reduce claims against the council include state-of-the art electronic recording systems to allow quicker response times for repairing defects in the highways.

It is hoped that by carrying out repairs more quickly, the council will reduce the amount of pot-holes, 'trips' and other defects which they hope will also reduce the number of claims made.

The Fraudline allows the caller to leave information about suspected bogus claimants anonymously.

source: BBC News (Last Updated: Wednesday, 27 April, 2005)

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