An independent medical panel will be set up to accredit doctors who wish to act as insurance examiners.
The system is designed to prevent doctors being faced with unfair pressure to support fraudulent claims.
The threshold for small claims courts is being raised from £1,000 to £5,000, so that they can handle all but the most serious cases.
It will also include banning "referral fees" where companies can profit from selling on someone's personal injury claim and stopping claims management companies from offering money or goods as an inducement to make a claim through them.
They will include rebalancing no-win no-fee deals so losing defendants will no longer have to pay a success fee or legal insurance premium to the claimant's lawyer.
Today's consultation complements law changes which will come into effect in April 2013.
More top news
The Brits saw two awards handed to the late David Bowie and tributes to George Michael. Here is a full list of the winners.
Regularly getting in more than nine hours in bed could be an early warning sign of the disease, say scientists.
Bradley Lowery has a rare form of cancer and although he's having treatment it will only give him more time.