1. What steps he is taking to reduce the cost and quantity of claims for compensation for whiplash injuries. (162384)

Earlier this year, the Government consulted on proposals to reduce the number and cost of whiplash claims. We will publish our response after we have considered the Transport Committee’s report, which we expect to be published before the summer recess.

Car insurance premiums in Bradford are the highest in the country. The Institute and Faculty of Actuaries has released information showing that the number of third-party whiplash claims rose by 5% in the year 2010-11, although the number of accidents fell. According to the institute’s chairman, 60% of the claims were exaggerated, misrepresented or fraudulent. Will the Secretary of State look again at the period within which claims can be made? At present, a claim can be made up to three years after a whiplash accident.

We have no plans to change the law on limitation, but I assure my hon. Friend that the Government are absolutely committed to tackling fraudulent whiplash claims, while also ensuring that those with genuine neck injuries receive the compensation that they need and deserve. Making the system fairer for defendants does not, of course, compromise access to justice for claimants, and we will seek to restore balance to the civil justice system.

As the Minister knows, the vast majority of claims are genuine. Rather than being obsessed with this issue, should not the Government be targeting some of the practices of the insurance industry, such as cold-calling victims or referring them to its in-house lawyers in the hope of settling claims cheaply? Why are the Government not doing that? Is it because, again, they are on the side of the big battalions rather than the consumer?

The hon. Lady has got it absolutely wrong. We know that the Government, the insurance industry and claimant lawyers must all work to tackle fraud, because it is completely unacceptable. We fully expect the industry to pass on the considerable savings that it will make to the public in the form of reduced insurance premiums.

Having suffered a severe whiplash injury after someone shunted my vehicle many years ago, I have great sympathy for genuine victims, but there is widespread evidence that gangs have moved into what they see as a profitable business, generating deliberately fraudulent claims, and that that is driving up premiums for ordinary motorists.

I agree. Unfortunately, a compensation culture was allowed to develop under the last Government, and we are having to deal with it now. Our reforms will ensure that meritorious claims will always be possible, while also ensuring that unnecessary claims are avoided.

Given that the cost of car insurance is very high in Northern Ireland, particularly in relation to whiplash injuries, and given that the issue was referred to the Competition Commission last year, will the Minister tell us whether she has received any progress reports from the commission?

I personally have received no progress reports, but I am happy to look into the matter for the hon. Lady. The Automobile Association recently reported a 4.1% reduction in premiums, which it attributed to the impact of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and the Government’s other reforms, but it is clear that much more needs to be done.