UK lawyers are being blamed for inflating the amounts paid out in motor injury claims and their actions are fueling a compensation culture according to a new survey.

The claims have been made following an in-depth review by the International Underwriting Agency and the Association of British Insurers (ABI) which highlighted the increased profits made by lawyers, who are now receiving an average of 43 pence in legal fees for every £1 paid out for motor injuries in the UK. This compares to 30 pence in 2005.

The study investigated over 2 million claims made over the past 10 years and revealed that the total amount being paid out in motor accident claims now totals around £2 billion per annum, with the average cost per claim being £9,356.

The report showed that legal costs now account for £40 of the average motor insurance premium and also recommended that urgent reform is needed to speed up the current compensation process as the average claim is now taking two years to complete.