LANCASHIRE Police have reassured motorists in the wake of an MP’s revelations on rocketing car insurance premiums.

Blackburn MP Jack Straw revealed last month that the industry’s ‘dirty secret’ was the insurance companies themselves were selling on clients’ details to personal injury firms for between £200 and £1,000 a time.

He said that was the main reason for 30 per cent increases on East Lancashire premiums.

Mr Straw said the insurance companies claimed that if they didn’t profit from selling people’s personal data, other agencies would do.

He said one police force made £2.5million from the underhand practice.

But a statement from Lancashire Police, after a request from the Lancashire Telegraph on their records of passing on or selling on individual information to personal injury firms, said they had never engaged in the activity.

It said: “Lancashire Police does not and has never sold the details of those involved in traffic collisions to claims management companies, claims handlers or personal injury solicitors.

“To do so would be in direct breach of the Data Protection Act and any employee found to be selling personal details would be investigated and disciplined accordingly.

“I have liaised with our Professional Standards Department and can confirm that there have been no such cases within Lancashire.”

Mr Straw is now proposing outlawing referral fees and an overhaul of the no-win-no-fee system, as well as changing the law on whiplash damages to require a stricter burden of proof.

He also wants a clampdown on the trade in personal data and tighter regulations of claims companies.