TAOISEACH Leo Varadkar has said that a "nexus" exists between some elements of the legal and medical professions who make "a lot of money" out of insurance claims.

Mr Varadkar was speaking in the wake of the Irish Independent exposing how some lawyers and GPs are fuelling compensation culture by actively encouraging patients to bring claims.

The investigation also uncovered how some solicitors are asking doctors to amend medical reports for personal injury claims.

"It seems that the cure for whiplash in Ireland is a compensation payment, not a medical treatment," Mr Varadkar told the Dáil.

The reporting by the Irish Independent was praised by Mr Varadkar and Fianna Fáil leader Micheál Martin who questioned the Taoiseach on the “considerable inertia” and “lack of urgency” with reforms to drive down insurance costs. Mr Martin said two pieces of Fianna Fáil legislation needed to be "fast-tracked".

Mr Varadkar said the issue of insurance costs was of "huge concern" to the business sector as well as sports clubs, creches and community halls.

He said there is a “nexus that exists” between some elements of the legal profession and some elements of the medical profession. "Elements of both professions make a lot of money out of these claims," he said.

Mr Varadkar said that the cost of motor insurance, health insurance and home insurance had all come down in recent years and highlighted a number of measures that would tackle the crisis, including legislation to put perjury on a statutory footing; new laws to increase transparency and the new Judicial Council.

He said that while there had been a recommendation to establish a dedicated national bureau for insurance fraud in An Garda Síochána, but that Commissioner Drew Harris had decided it is best done at a divisional and local level.

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