Ministers should consider reducing the limitation period for road accident insurance claims, and require whiplash claimants to produce more supporting evidence. But genuine claimants should not be demonised, according to MPs.

Transport Select Committee chair Louise Ellman MP, said: "Whiplash injuries can have debilitating consequences for those who suffer them. However, some of the increase in whiplash claims will have been due to fraud or exaggeration.

"To help bring insurance premiums down the Government must tighten up the requirements for motor insurance claims and ensure that insurers honour their commitment to reduce premiums.

"The Government should consider requiring claimants to provide proof that they have either been seen by a doctor or attended A&E shortly after the accident. There should be a presumption against accepting claims where adequate proof of injury is not provided."

The number of fraudulent and exaggerated whiplash claims has contributed to the increase in motor insurance premiums in recent years. Estimates of the percentage of fraudulent claims ranged from 0.1% to over 60%, according to the report. These estimates were based on firms' caseloads, statistical extrapolations or survey data. Forms of fraudulent activity mentioned by witnesses included ‘cash-for-crash', where crashes were caused deliberately to generate claims; claims relating to non-existent passengers; fabricated or exaggerated symptoms; or exaggeration of the impact of a genuine injury.

Ellman added: "The Government has claimed that the UK is the ‘whiplash capital of the world', but without reliable data on road accidents we cannot say whether that statement is true or not."

Malcolm Overton, head of personal Injury at Equity Insurance Group, said: “Compensation for genuine whiplash or motor accident injury is correct and justified. The statistics show however that UK motorists are far more susceptible to whiplash than in any other European country. While proof of injury is very difficult, many whiplash claims are submitted after just a telephone questionnaire and without a proper physical examination – we welcome all measures to improve this system, including a reduction of the time allowed to make a motor injury claim.

"Fighting motor fraud is a major concern for the insurance industry, particularly when it potentially costs both the insurer and the consumer more to fight a fraudulent clime than it does to make a payment - keeping legal bills down will ultimately keep premiums down.”