Recently this story was on TV One's show Seven Sharp. The show featured two different stories of amputees Penny Gifkin and Blair Marriott.
Blair lost his leg after being hit by a reckless driver in a stolen car while riding his motorbike. Penny lost both of her legs and several fingers on her left hand after she woke one morning vomiting and was rushed to intensive care then to be diagnosed with meningococcal disease.
As Blair's situation was an accident his surgery and prosthetics were fully funded by ACC. Penny on the other hand is not entitled to the same prosthetics as it was due to a medical issue. Because Penny works home help was cut, she doesn't qualify for things like an access ramp, equipment to make things easier and her prosthetic legs were the basic of basic due to the limited funding.
If Penny had insurance there is a chance (depending on the type she had) that she would have been covered for these expenses.
TPD cover with a good partial feature or Trauma cover with a good loss of limbs feature would have been sufficient. Product quality does count though - not every TPD and Trauma product would have covered her.