"SLIP and trip" claims cost Bolton Council a staggering £1.4 million over the last year.
Figures show that 40 compensation claims are submitted to the local authority every week.
Now town hall bosses have announced a fresh crackdown on fraudulent claims in the belief that some claimants are cashing in by submitting multiple claims to different local authorities across the country for the same accident.
All claims will now be passed on to the Audit Commission so that they can be cross-checked with other authorites to ensure duplicate claims are not being made.
Leader of Bolton Council Cllr Barbara Ronson believes the move will save local authorities thousands of pounds.
She said: "Fraudulent claims are an unnecessary drain on public funds, which results in poorer quality or reduced levels of service for local people. It also causes delays in processing genuine claims." "Every claim will still be considered on its merits, so in genuine cases people have no need to worry."
Around 80 per cent of claims made to the council are immediately rejected The new measures are being introduced to fight back against dishonest people who push up the annual bill for accidents, such as trips on pavements.
Since September last year the council has accepted 600 claims with an average pay-out of more than £2,300.
Solicitors, claims agents and individuals making claims will be informed by letter that checks are being made with the Audit Commission. Details of claims will remain confidential under the Data Protection Act.
Last year it was feared that the annual bill for accident claims could rise as high as £12 million following the emergence of "no win, no fee" law firms and a US-style claims culture.
Graham Rhodes, risk manager at the council's finance department, said: "Thankfully we have not see the rise we feared. There was a boom about four years ago and the number of claims we receive has remained pretty steady since then. I think it demonstrates how good we have become at defending claims."
Anyone with details of fraudulent insurance claims against the council can report it by calling Vivien Hutchinson on 01204 331679. Calls will be treated in confidence
What is your opinion of the claims culture? Write to: The Editor, Bolton Evening News, Newspaper House, Churchgate, Bolton, BL1 1DE, or email: letters@boltonevening news.co.uk
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