As part of the announcement of its tax policy, the party said it would extend the ACC scheme to cover lost earnings from illness – not just accidents, as is currently the case.

Payments would be made at up to 80% of a worker’s salary or 80% of the full-time minimum wage, whichever was higher.

People are more likely to be off work for an extended period through illness than injury but most cannot qualify for a benefit if they live with a partner who is in work.

That gap has been something that private insurers have sought to provide New Zealanders with cover for.

But Financial Services Council chief executive Richard Klipin welcomed the proposal.

“New Zealand has a significant problem with underinsurance and ensuring that we are protected when that rainy day hits, so it’s positive to see a policy that considers how to support Kiwis when the unexpected happens. We look forward to discussing the proposal in more detail with the Green Party and in particular the role that private sector providers can play in ensuring all New Zealanders have the insurance cover that they need.”

This is not the first time the suggestion has been made.

In 2018, former prime minister Sir Geoffrey Palmer told Victoria University that drawing a line between injuries and other medical issues could be difficult and unfair.

A “single unified system” would end unjust discrimination, he said.

ACC Minister Iain lees-Galloway didn’t discount the idea but said it would require considerable public debate.

Partners Life founder Naomi Ballantyne said at the time it would disrupt but not destroy the insurance market.

If the Government decided to offer illness cover on ACC, there would be nothing to stop a future government reversing that decision.

People who had since developed health conditions then might not be able to get cover for them.