The Department of Health has rejected a claim by the Medical Defence Union (MDU) that the Government has accepted responsibility for historical medical negligence suits.
The MDU said in a statement this afternoon that it believes the Department had "finally acknowledged its rightful responsibility" for any such claims against hospital consultants.
MDU Professional Services Director, Dr Christine Tomkins, said: "We are pleased the Irish Hospital Consultants Association (IHCA) and the Irish Medical Organisation (IMO) appear to have received assurances that are convincing enough for them to defer their planned industrial action."
A letter to consultants from the Government last month stated the Cabinet endorsed Tánaiste and Minister for Health Mary Harney's commitment that no consultant refused assistance by the MDU would be left uncovered by the State if sued.
Dr Tomkins added: "We assume the Tánaiste has given consultants a written reassurance to this effect and we have asked the DoHC to provide details."
A spokesman for the Department told ireland.com: "The Department has not agreed to take over the historical liabilities of the Medical Defence Union and there is a clear legal strategy which the Department intend to pursue in order to ensure that the Medical Defence Union takes responsibility for the liabilities for which they received premiums in the past.
"The Department has not agreed to accept resopnsibility for these," he added.
In a statement on Monday, consultants represented by the IMO, said they had decided to defer strike action due to the "administrative upheaval" in the Department caused by the findings of the Travers report into nursing home charges.
The IMO said it planned to review the situation on May 13th.
Last month, consultants who are members of the IHCA decided to call off planned industrial action and said they were joining with the Government in taking legal action against the MDU.
The MDU pulled out of talks with the Department of Health last month after Ms Harney accused it of having "behaved disgracefully", and of having "betrayed" Irish doctors and patients.
Since a new State insurance scheme for consultants was introduced in February 2004, the union has refused cover to 30 Irish consultants who are being sued for historic liabilities.