Government plans to cut the amount being paid out for personal injury claims have been rejected.
Senior judges have told the Justice Minister that the proposals would not stand up in court.
Claims for minor injuries such as whiplash here are paid out at 4.5 times what a similar claim would yield in Britain.
The insurance sector says high-cost payouts are one of the leading causes of increased premiums.
The Justice Minister had proposed a group of judges and officials from the department and the personal injuries assessment board be set up to revise guideline award levels for less serious injuries.
However, the Irish Independent reports that senior judges warned that the proposal would not stand up if tested in court.
Charlie Flanagan's plan was an interim measure, pending the introduction of a Judicial Council which will be tasked with drawing up guidelines for appropriate damages.