Judge Maureen Harding Clark, author of last week's report on the Lourdes Hospital and the activities of Dr Michael Neary, will be asked to devise a redress scheme for the women affected.
The Cabinet endorsed the proposal from the Tánaiste and Minister for Health, Mary Harney.
The ministers expect Judge Harding Clark to revert to them in around two months with proposals that will ensure the maximum contribution from the insurance companies involved.