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As anyone who has ever been rear-end shunted will know, whiplash is not very nice. It happened to me over 30 years ago, and I am still suffering the effects, although at the time the specialist I saw was not very sympathetic. I got £1500 in compensation, and was told by my lawyer that I had done well. I do not think so now.
There are no doubt many who make exaggerated claims, and insurers have a point. But the answer is surely to crack down on dodgy medical evidence, not to make honest claimants have to jump through ever higher hoops.
I can't help agreeing that this was a very strange item to include in a budget statement, and it does rather point to an over-cosy arrangement between the insurance industry and the Tories.

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