Is stress becoming the new whiplash? Law firms find another way to cash in on crashes Greedy law firms are raking in cash through stress-related injury claims Claims handlers are encouraging drivers to exaggerate their injuries In April the Government announced a crackdown on claims management companies in a bid to drive down car insurance premiums By Victoria Bischoff Greedy law firms facing a crackdown on bogus whiplash injury claims are now encouraging car crash victims to seek compensation for stress. Claims handlers have raked in millions of pounds by encouraging drivers to make exaggerated whiplash claims through no-win, no-fee lawyers. In many cases the victim hasn't even suffered an injury. But as the Government moves to make it harder for firms to cash in on whiplash claims, insurers are becoming increasingly concerned that stress caused by accidents may be the "new whiplash." As the Government moves to make it harder for firms to cash in on whiplash claims, insurers are becoming increasingly concerned about stress related injuries One company, Thompsons Solicitors, even claims on its website that more than one in five car crash victims suffer "acute stress syndrome" triggered by horrific memories of an accident. Paul Evans, chief executive of insurance company Axa, said: "In recent months we have started seeing more claims for stress coming through. This is a worrying trend as, like whiplash, stress is nearly impossible to prove from a medical point of view so it's difficult to tell which claims are fraudulent and which are genuine. Mr Evans raised his concerns after a report by MPs on the Transport Select Committee called for new rules requiring anyone making a whiplash claim following a car crash to provide more proof of their injuries. Claims handlers have raked in millions of pounds by encouraging drivers to make exaggerated whiplash claims through no-win, no-fee lawyers Drivers make around 1,370 claims for whiplash injuries every day. This adds around £90 to every motor insurance policy, costing UK motorists £2billion a year. In April the Government announced a crackdown on claims management companies in a bid to drive down car insurance premiums. Ministers introduced a ban on referral fees between claims firms and lawyers. They are also no longer allowed to demand upfront charges. Hundreds of claims management firms have shut since the introduction of the tougher laws. There are now 1,700 companies handling personal injury claims - down from 2,435 in March last year. But the claims firms which are still operating are continuing to find new ways to make money from accidents. Many are encouraging victims to claim for loss of earnings as a result of post-traumatic stress disorder, or phobic travel anxiety. Ian Crowder, of the AA, said: "We are certainly keeping a close eye on claims relating to stress and are wary of people who may be trying it on. But we must be careful not to belittle this sort of claim as the trauma experienced as a result of a big crash can be extremely debilitating. A spokesman for the Association of British Insurers said: "We are concerned that while the Government is tackling the whiplash problem, innovative claims lawyers will just find another way to claim a chunk of compensation. It is also very difficult to pin down exactly how many claims for stress are being made as they are often bundled in as part of another claim. Claims companies are also currently targeting workers who may have suffered loss of hearing or "occupational deafness" as a result of being exposed to excessive noise in a job such as construction. Many are being encouraged to claim years after leaving their jobs as sufferers say it can take years for the problem to appear. Again, for insurers, it is difficult to obtain hard medical proof.