Steven Schembri, 25, was knocked unconscious and suffered a fractured skull when his car was struck head-on by another in Buckinghamshire in October 2000.

Mr Schembri, of Chesham, had hoped to become a 'Hot Rod' racing driver but was told by doctors three years after the crash that he would never drive again.

He still has impaired communication skills and a poor memory because of the accident.

Mr Schembri was at the wheel of his car when it was hit by a Mercedes 2000, driven by Steven Davies, of Monks Risborough, Buckinghamshire.

He had recently passed his test and his insurers admitted liability.

Mr Justice Foskett, sitting at London's High Court, approved the £3.5m payout.

After the hearing Mr Schembri's parents called for a change in the law to ensure that motorists who have recently passed their driving tests cannot drive high-performance cars.

The court heard that the accident had shattered Mr Schembri's ambitions of becoming a competitive racing driving, as he is now incapable of holding a driving licence because of his injuries.

He had already won several cups and trophies as an amateur before the crash.

Mr Schembri's QC, Robert Glancy, said the compensation package should provide for his client's future "therapies and living requirements." He has recently moved into his own bungalow near his parents' home in Chesham.

Mr Justice Foskett said he had "no hesitation" in approving the figure, adding that cases such as Mr Schembri's are "among the most difficult to resolve".

Mr Schembri's passenger Craig Herbert, from Chesham, also sustained abrasions and whiplash injuries in the crash.