Chris Grayling insisted society is becoming "increasingly litigious" despite the country being safer than ever, as he told the Commons there is no need for people to be "suing more and more".
Personal injury claims against employers registered with the Government's Compensation Recovery Unit have increased from around 81,000 in 2010/11 to more than 105,000 in 2013/14, Mr Grayling said.
Moving laws designed to protect so-called good Samaritans, the Tory front-bencher added he wants to target a "culture of ambulance chasing" which seeks to generate fees rather than do the right thing, while bringing "balance to the health and safety culture".
But shadow justice secretary Sadiq Khan labelled the Social Action, Responsibility and Herosim Bill "pathetic", adding it was not based on evidence and would not cut the risk of being sued.
On the personal injury claim figures, Mr Khan said the Ministry of Justice had said the number of civil claims is decreasing.
He noted either Mr Grayling's reforms to reduce personal injury claims are not working or the statistics from the MoJ are "wrong".
Speaking before the Bill cleared its second reading unopposed, Labour's Jim Cunningham (Coventry South) suggested there would be fewer frivolous claims given that it is "very difficult" to take somebody to a tribunal and legal aid has been cut.