Ministers to act over claims for whiplash

Transport Secretary Justine Greening, Health Secretary Andrew Lansley, Justice Secretary Ken Clarke, Home Secretary Theresa May and Business Secretary Vince Cable will meet to discuss the situation.

Prime Minister David Cameron will later convene a wider review on the subject.

In January, the Transport Select Committee criticised the fact Britain has much higher rates of whiplash claims than anywhere else in Europe, driving higher insurance premiums. The committee called for a higher threshold before payouts for whiplash are made.

Ms Greening said: “There is no getting away from it: the cost of car insurance is bearing increasingly little relationship to the real world where motorists act more responsibly than ever and accidents really do happen less often.

“With this in mind, it would be reasonable to expect premiums to come down or at least hold steady. But the cost of cover continues on a relentless climb.

“Sadly, Britain is now the whiplash capital of Europe, with more than 1,500 claims a day.”

She added: “Lawyers are encouraging people to claim for whiplash injuries sustained in the most minor of incidents – which barely damage the car’s paintwork, never mind its driver.

“As Transport Secretary I believe it is time to confront these issues and I’m determined to take a serious look at what can be done.”

Nick Starling, director of general insurance at the Association of British Insurers, said: “The insurance industry is fighting hard to protect the honest motorist against our ‘have a go’, motor compensation system which is riddled with excessive legal costs and fraudulent claims, especially for whiplash.

“We have long campaigned for reforms to the compensation system, an across-the-board ban on referral fees, a crackdown on the whiplash epidemic and for radical action to deal with the problems associated with young drivers.”