Individuals who make false or exaggerated insurance claims will be pursued for perjury under new legislation, the Tánaiste said yesterday.
Ms Harney also said the motor insurance firms should be given access to penalty-point data about their customers, but only if they promised to reduce the premiums of drivers who had no points.
The insurance industry, the Competition Authority and the Motor Insurance Advisory Board have called for insurers to be given penalty-point information.
In a presentation to an Oireachtas committee, Ms Harney said: "I know the insurance industry is looking for access to the data but there is a quid pro quo to be provided in return."
She added: "That quid quo pro will come in the form of reduced premiums for those who have no penalty points."
Addressing the Joint Committee on Small Business, she said the courts should be only the last resort for those seeking damages.
Plaintiffs in insurance cases would be required under new legislation to swear in affidavits that their claims were not false or exaggerated. "If any part of that affidavit is false, the individual will be liable to prosecution for perjury."
In addition, she said that a plaintiff's whole claim would fall "if any part" of it should prove to have been exaggerated. Such plaintiffs would also face an award for costs in the action made against them.
She said insurance companies should not settle claims too quickly if fraud was suspected. "It has been too easy in the past to make exaggerated claims."
Ms Harney said she wanted the Cabinet to approve the heads of a Bill to establish the Personal Injuries Assessment Board before summer, raising the possibility that it could become law before the end of the year.
The assessment board would introduce a paper-based, less formal system, which she hoped would contribute to reductions in insurance costs.
The committee chairman, Mr Donie Cassidy, said insurance was its "priority".
Despite "promising signs on the horizon", he said there was still "much to do" to reform the market.
Mr Cassidy added: "We want to see sensible and competitive insurance premiums that do not hinder business development. We will be examining the work under way to implement the Government's insurance market reforms. We want to speak to insurance providers and to users."
