Did this recently with my local council. There was a pothole around a drain and both the left hand wheels of my wifes Lupo GTi went into it and damaged the edge of the rims and a quarter of the way up the spokes. Called the council and within a day it was repaired. Waited a fortnight for the claim form but didn't get it. Called again and was told there was no record of my initial complaint !! I said " isn't it funny how it was repaired the following day then". They eventually sent out a claim form which required quotes to replace or repair and all the usual details of the incident. I sent this in , it was acknowledged and sent to their solicitors in Cardiff. I had a letter from them to say that under the some section of the highways act that the council have to prove they have an adequite maintainance schedule and that if it was ok the last time it was checked then they didn;t have to honour the claim. Their schedule requires a check every 6 mths ! Now, this section of road was one that suffered badly during the last winter when the temperatures dropped to unprecidented levels resulting in a badly potholed surface. I then asked, under the freedom of information act, to have a list of all the complaints received for that section of road. In the area of my pothole there were many complaints of other damage so I am now taking advice on how to persue this further. I'll keep you informed but , suffice to say, its not as "open cheque book" as you may think.
Chris.