A UK parliamentary report into the cost of motor insurance has blamed the rise in premiums in recent years on a surge in whiplash claims.

The Transport Select Committee has recommended that whiplash claimants be required to present a much higher standard of proof in the future, a decision which has been welcomed by the insurance industry.

Association of British Insurers (ABI) Director of General Insurance Nick Starling says the industry is pleased the committee has recognised that spiralling personal injury claims are the real reason car insurance premiums have been increasing.

“It is absolutely critical that Britain’s whiplash epidemic is tackled once and for all.”

The ABI criticised the committee for not taking a tougher stance on insurers passing on information about accidents to solicitors and claims management firms in return for referral fees, but BIBA says that banning referral fees will not directly reduce motor insurance premiums.

The ABI also called for lawyers’ fees to be reviewed, as they “add unnecessary cost”.

Motor insurance premiums continued to rise in the UK during 2011 with the latest AA British Insurance Premium Index indicating the average cheapest annual premium rose by 15% during last year.