In evidence to the Transport Committee inquiry into the cost of motor insurance, leading personal injury firm Thompsons says that the insurance industry has been stoking debate about compensation culture in order to undermine access to justice for injured people.

The firm claims that far from being concerned about rising motor premiums, the industry is determined to engineer the market so that weak, unrepresented claimants have to negotiate and litigate against strong, well financed and expertly represented insurers.

The motive, Thompsons says, is pure profit, not concern for the consumer.

Thompsons warns that the government’s response to insurance industry lobbying, to propose an increase in the small claims limit, will lead to the growth of a huge, unregulated industry and a market “stitched up to the advantage of insurers”.

Read Thompsons' submission to the inquiry.