Stockport Council implements anti-fraud measures to protect against false insurance claims

Stockport Council has introduced anti-fraud measures in a move to protect taxpayers money from illegal insurance claims against the borough.

Since November 2017, the council has stopped £1.2 million of council funds being paid out on false insurance claims. Instead, this money has been used to support important frontline services. The council works closely with legal experts to identify fraudulent claims so that they can be stopped at the earliest point in the claims process.

Cllr Malcolm Allan, Cabinet Member of Finance and Resources at Stockport Council, said:

“The council has insurance to cover when things go wrong and the vast majority of claims are made in good faith and are processed accordingly. Sadly, we are subject to scams and attempts at fraud like many individuals. Fraud is illegal and those who deliberately make false claims and try to cheat the system are taking valuable funds away from vital Council services, which in turn can see local communities and families suffer.”

Suzanne Milne, Local Government Partner and Head of Casualty Fraud at Weightmans LLP, who assist Stockport Council in identifying insurance fraud, said:

“The pro-active fraud strategies we adopt with the council demonstrate the commitment of local authorities and the insurance market in protecting public funds. Together we detect, defend, and deter fraudulent claims.

“It’s not acceptable to lie with the intention of obtaining financial compensation from a council who have to financially fund a significant proportion of claims. There needs to be an awareness of the consequences of this.

“Dishonest claims for compensation are not victimless crimes, they are incredibly costly to the wider community when much needed public funds are needed elsewhere.”

The anti-fraud strategy allows the council to quickly establish potentially fraudulent claims being brought against it, either due to exaggerating the value or circumstances of a claim, using forged evidence or entirely fabricating incidents or losses.