Prime Minister Jacinda Ardern recognises the troubles the family of Abby Hartley is facing in Bali but has stood firm on the Government not being able to step in.

Hartley fell ill at the start of this month while holidaying in Bali and was eventually placed in an induced coma on August 15.

Her family created a Givealittle page to help cover the enormous hospital bills stacking up after their insurance company refused to pay.

Speaking today, the Prime Minister said the situation is "deeply distressing" and is a case where their insurance company should step up.

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"I can only imagine that kind of situation, I know the MFAT team on the ground are doing what they can.

"Ultimately, what we hope is in these cases that insurers really step in and assist families when they have situations like this", Ardern said.

Abby Hartley, centre, mum to Sophi, left, and Toby, right, and wife to Richard Hartley, rear, has been in hospital in Bali since August 1. Photo / Supplied
Abby Hartley, centre, mum to Sophi, left, and Toby, right, and wife to Richard Hartley, rear, has been in hospital in Bali since August 1. Photo / Supplied

Hartley's husband wrote to the Government for help to bring his wife home, however, Foreign Affairs Minister Winston Peters said it wasn't possible.

This afternoon Richard Hartley told the Herald it makes the families mind "boggle as to why they don't understand that the insurance will not pay out".

"Winston said this at the end of his letter. Why they couldn't help 50/50 with us. Maybe take it out of our taxes like a term loan?

"But hey, I am not an accountant that works for the Government. Insurance is based on risk factor; we lost," he said.

Peters offered his sympathies to the Hartley family for not being able to step in and said there was nothing more the Government could do to help.

Over the past two days, there has been a dramatic surge in funds donated to Hartley's cause, from around $85,000 on Monday to nearly $200,000 today.

The response and kindness from friends and strangers around the world have overwhelmed the family, Richard Hartley said.

"If we as a family could thank every single one of you we would. The infectious personality of Abby has made its mark on people who know her closest," Hartley said.

The family said she was showing good progress and her doctors were impressed with how she was this morning.

"This was good to hear and put smiles on our faces ... we are so close to bringing mum home," the family said on Givealittle.