MPs tackle rising whiplash claims

The transport secretary has said that by urging motorists to make whiplash claims, compensation lawyers are to blame for driving up insurance premiums.

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

Transport secretary Justine Greening said: "From texting and cold-calling drivers involved in accidents, to running high profile advertising campaigns, 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."

A summit of top cabinet ministers has now been formed to tackle the issue, with Prime Minister David Cameron later set to hold a wider review.

Nick Starling, director of general insurance at the Association of British Insurers, said: "Honest motorists have rightly had enough of paying for ambulance chasing lawyers, claims management companies and fraudsters who milk the compensation merry go round through higher premiums.

"Reducing these costs will mean cheapermotor insurance for consumers and the insurance industry will play its part in delivering this."

Copyright Press Association 2012