FRAUDBUSTERS at Bolton legal firm Keoghs are helping insurance companies keep the lid on premiums.

The Specialist Claims Unit (SCU), established by Keoghs five years ago, believes it saved the industry £3.45 million last year.

Keoghs has become a national player in this market and now tackles suspect claims -- mainly involving vehicles -- for about 35 companies.

The firm has a 35-strong team in Bolton, and another in Coventry employing 14 people.

SCU head Don Clarke and fellow partner Damian Ward say their activities represent a growing part of their business -- but do not think this means that fraud is on the increase.

Mr Clarke said: "The industry is getting better at detecting it. As you get smarter, you detect more."

He stressed that most claimants were honest, and that insurance companies paid out on bona fide claims as quickly as possible.

But Mr Ward said a drop in new car prices meant second-hand vehicles were worth less and could provoke fraud.

It looks as though insurance companies are becoming wise to such practices, and fraudsters can expect to receive attention from specialist loss adjusters, private detectives and other experts.

Keoghs are also often involved when cases go to court.

Mr Clarke said: "If people are making fraudulent claims, it is going to have a knock-on effect on insurance premiums."

Keoghs, which is based on the Parklands Business Park, near the Reebok Stadium, continues to grow. Mr Clarke said the SCU was looking to expand into commercial fraud and life insurance business.