The Minister with responsibility for insurance, Michael D'Arcy, has suggested Irish people are too quick to sue over accidents.
Mr D'Arcy said the Government is trying to tackle rising insurance premiums.
The average compensation payouts here are up to five times the level in the UK.
Minister D'Arcy said there is a "litigious nature" among a lot of people.
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He said: "I've a simple test. If some of these accidents happened in your brother's house or your sister's house, would you sue your brother or your sister for negligence? You wouldn't.
"But what happens in a business, it seems like 'oh they're insured, that's okay', and that mindset is prevailing right now and it's prevailing mainly because the awards are very high."
