The NSW Government will delay plans to reform the state’s compulsory third-party insurance scheme after failing to secure support in the Parliament’s upper house.

“We will take the next six weeks to communicate and further consult on stakeholder issues and, at the same time, work with crossbench MPs,” Acting Finance and Services Minister Andrew Constance said.

The Government plans a roundtable next month to discuss changes with interested groups. It expects the Legislative Council to debate the bill again in late August.

Consultations will involve accident victims, insurers, lawyers and community and business leaders, plus Motor Accidents Authority representatives and actuarial experts.

The reforms, which include moving to a no-fault system, are designed to speed up payments and remove points of friction and dispute, Mr Constance says.

The Labor opposition says the changes will disadvantage children injured in accidents and leave many people effectively underinsured.