A woman involved in a road traffic accident who attempted to defraud a cheap car insurance company of £800,000, faces two years in prison after lying about her injuries.

The woman was involved in a rear-end shunt in 2001, when a fellow woman driver drove into the back of her car.

The woman then claimed she had developed a condition known as fibromyalgia that at times left her bed ridden and unable to walk more than 10 steps before requiring assistance.

She originally claimed for £800,000 in damages, but accepted a settlement for £25,000 last June after the at-fault driver's car insurance company did not dispute liability for the accident.

However, private investigators for the insurance firm have filmed the injured woman allegedly walking, shopping and driving without assistance.

The insurers have now applied to the High Court in London in order to bring charges of contempt; claiming the woman had lied about her injuries.

The judge who granted permission for the contempt hearing said, "The allegations are, in my view, sufficiently serious as to merit such proceedings being brought in the public interest and, having regard to the overriding objective, are proportionate in the circumstances."

A CoverGirl car insurance company spokesperson said, "Drivers who try to defraud motor insurance firms think that it is a victimless crime, however, for every claim that is settled the honest motorist has to pay in terms of increased car insurance premiums."