The Government is willing to hold a referendum if necessary in order to reform the insurance industry.
The Junior Finance Minister says it would be an option if judges fail to reduce the level of payouts for personal injuries.
The long awaited Judicial Council, which will create new guidelines for such cases, was formally set up earlier this month.
Junior Minister Michael D'arcy says the public could potentially be asked whether the Oireachtas should have the power to cap personal injury awards.
