It advises a shake-up of the way personal injury claims are handled, which could require claimants to produce more evidence that they are suffering whiplash after an accident.

The Committee also said it was concerned to find some insurers make an offer to personal injury claimants before receiving a medical report.

Fraudulent claims are estimated to account for anywhere between 0.1% and 60% of all personal injury claims, the report said, based on data from surveys, insurance companies and statistical extrapolations. However, there are no comprehensive official statistics about road traffic accidents.

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.

 ‘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 report also suggests extra transparency in the links between insurers and other parties involved in a claim, while the government is being advised to reduce the length of the period where claims can be made from three years.

But Ellman added that any tightening of rules should not add barriers to genuine claimants: ‘Many claims are genuine and relate to real injuries which can affect people for months or years. In the debate about how to reduce fraud and exaggeration, genuine claimants should not be demonised simply because their condition cannot be picked up on a scan,’ she said.

Fraudulent whiplash claims are one of a number of factors contributing to the recent rise in motor premiums, including the activities of claims management companies, the poor safety record of young drivers and competition issues now under investigation by the Competition Commission. The report reiterates the Committee's previous recommendation for more effective cross-departmental co-ordination of work to reduce premiums.