FORMER Blackburn MP Jack Straw has welcomed the latest Government move to crack down on bogus whiplash claims.

He hopes that it will soon help cut car insurance premiums in East Lancashire’s BB postcode.

Justice secretary Liz Truss is finalising proposals to cut compensation for whiplash injuries and weed out bogus claims, first promised by the Government in October 2013.

The new measure, if introduced, could see premiums cut by £40 a year for millions of drivers.

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Mr Straw, who has long campaigned on the issue, said: “This process is taking a long time.

“I am pleased we are making progress on the issue to tackle often bogus claims.

“All too often whiplash is just a scam which costs other drivers money.

“Hopefully we will see action soon cutting insurance premiums for motorists across East Lancashire’s BB postcode.”

Whiplash claims have risen by 50 per cent in the past decade, costing insurance companies about £1billion a year.

Insurers have pledged to pass on the savings to drivers.

A Ministry of Justice consultation suggests payments, other than medical bills or loss of earnings, could be banned.

Another option is capping them at £425 compared to the current average payout of £1,850.

Medical reports from an accredited expert will be required to pay claims.

The BB postcode – covering Blackburn, Burnley, Rossendale, Accrington, Pendle and the Ribble Valley – is one of the most expensive in the country for premiums.

Pendle Peer Tony Greaves said: “I think we are at last moving in the right direction.”

Mrs Truss said: “These reforms will crack down on minor, exaggerated and fraudulent claims.”

A spokesman for The Association of British Insurers welcomed the consultation.

He said: “These reforms are important.

“They will help to give honest motorists a better deal.”