PM to vow action on whiplash claims

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The Prime Minister is hosting a summit with insurance, consumer and business groups at Downing Street to discuss ways to bring down soaring premiums.

Britain has become "the whiplash capital of Europe", Number 10 said, with 1,500 claims a day for even the most minor accidents adding £90 a year to the average bill.

Ministers are examining recent calls by the Commons Transport Committee for a higher threshold - using factors such as speed or more extensive medical evidence.

Other issues to be examined are the wider use of in-car monitoring of young drivers, reform of the "no win, no fee" system and reducing lawyer fees for small personal accident cases.

Concerns raised by businesses that they are being forced to go far beyond legal minimums in order to secure insurance cover will also be discussed.

Mr Cameron is expected to say: "I am determined to tackle this damaging compensation culture which has been pushing up premiums.

"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.

"The insurance industry plays such an important part in all our lives - it is there to help when we are at our most vulnerable and at greatest need. But I want to ensure that we all do what we can to help people through this difficult time."

Shadow transport minister John Woodcock said: "The vast majority of motorists drive responsibly and yet continue to be hit by eye-watering increases in insurance costs, in part due to the sheer number of dodgy whiplash claims."