The European Commission is taking Ireland to the European Court of Justice over the Government's failure to implement EU car insurance rules.
Ireland is one of five countries which have yet to implement the Fourth Motor Insurance Directive, which enables EU drivers involved in an accident outside their own country to claim compensation easily.
Under the directive, victims can refer directly to the insurer of the liable party rather than going through the liable party.
Each insurer must nominate a claims representative in every EU member-state so that the victim can make a claim in his or her own language and member-state.
Member-states are required to impose sanctions on insurers who take more than three months to make a reasoned reply to a compensation request. Governments must also set up information centres to deal with car insurance issues, making it easier for victims to establish who insures the liable party. All member-states were supposed to have implemented the directive by July 20th, 2002.