Insurance investigators save over £100,000

A special insurance fraud unit created by Lambeth Council has saved taxpayers over £100,000.

"There has been a compensation culture explosion over the last few years and local authorities have increasingly found themselves in the sights of chancers." said Councillor Jim Dickson, the council’s cabinet member for finance and resources.

In 2007/8 the council paid out £1,598,043.26 for genuine claims from staff and the public. But in the same 12 month period the fraud team discovered bogus, or inflated claims totalling £108,733.

Councillor Dickson said: "Insurance fraud is not a 'harmless' crime. Every penny spent paying out on sham demands is money, which cannot be spent on essential services - it is theft pure and simple."

The council's insurance fraud team looks at all suspicious claims, and specially trained officers visit claimants and conduct face-to-face interviews. They also inspect damaged property and visit the scenes of incidents to collect evidence.

Councillor Dickson said that while all councils are regularly targeted by insurance fraudsters, the problem has not always been taking seriously.

He said: "Lambeth has decided to actively break with convention and is taking a pro-active and public stance against insurance fraud, which is most definitely not the victimless crime it is commonly perceived."

Lambeth was the first council in country to have its own team of investigators and a fraud hotline set up for residents to report suspected false claims.

Councillor Dickson added: "We are determined to challenge the common perception and make sure that honest council tax payers do not end up subsidising fraudsters."