Proposal could see end of cash payouts for whiplash

Cash payouts for whiplash could be abolished if the Minister tasked with examining the rising cost of car insurance gets his way.

Junior Finance Minister Eoghan Murphy appeared before an Oireachtas Committee earlier today to answer questions on his working group on insurance.

Several government Departments are investigating a number of issues including rising premiums, fraud and legal costs.

Among the changes Minister Murphy would like to see is for claimants with whiplash to have their medical costs paid for - rather than receiving lump sums.

"I certainly prefer the care-not-cash model, I think that would be tinkering if we could achieve it," he said.

"The reason why I don't like the model about paying at the fuel pump is that I think it penalises people who drive more and it takes the onus off the insurance sector to actually be a part of the reform, and give greater transparency."