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The Government has stepped up its efforts to cut whiplash insurance claims following a meeting at Downing Street.
David Cameron hosted a meeting with insurance, business and consumer groups to crack down on what he described as "trivial claims" and the reasons why Britain had become "the whiplash capital of Europe".
The meeting was instigated because of a recommendation from the Commons Transport Select Committee that the Government introduce legislation that requires evidence from injured parties before they can receive compensation for a whiplash claim.
The Prime Minister said: "I want to stop trivial claims, free up businesses from the stranglehold of health and safety red tape and look at ways we can bring costs down."
Representatives of insurance companies RBS, Aviva, Zurich, Axa and Admiral were among those present at the meeting. They called for the introduction of a minimum speed limit at which an accident can take place if a whiplash claim is to be made.
Similar legislation exists in Germany, where drivers have to be travelling at 10kph (around 6mph) or more and provide two medical opinions to support the claim.
The Government is looking to introduce a team of experts, appointed by a court, to assess the severity of claims. It has also announced it plans to ban referral fees, making it illegal for insurance companies to sell-on personal injury details to lawyers, who then encourage claims.
Ministers also announced they are considering the use of monitoring devices for young drivers, those who pay the most inflated premiums, in an attempt to cut policy costs. It is also hoped such a system would see a reduction in the fees lawyers can charge for small-value personal injury claims.
It is alleged whiplash claims cost the insurance industry £2 billion a year and that there are around 1500 such claims every day in the UK, many resulting from extremely minor accidents.
David McMillan, CEO of general insurance at Aviva UK, said: "This meeting is an important step in tackling the compensation culture in the UK, which has driven up the cost of insurance for consumers and businesses alike. It is our hope that after the positive meeting, the Government will drive forward the urgent reform that is necessary to tackle the root causes of increasing insurance premiums.
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