Three soldiers are dealing with mental and physical scars more than a year after they were doused in fuel and burnt by a Molotov cocktail during a training exercise.

Relationship break-ups, strange looks from children, panic attacks and what one described as “pyrophobia” – a fear of hot things – plague them as a consequence of the New Zealand Defence Force failing to keep them safe.

The defence force was fined $354,750 in the Palmerston North District Court on Tuesday for failing to take steps to protect the soldiers.

The fine would have been smaller, but Judge Jonathan Krebs​ increased it due to the defence force’s record of breaching health and safety rules.

The defence force was also ordered to pay $100,000 emotional harm reparation, split between the three soldiers harmed at Linton Military Camp in August 2020

The incident happened during Operation Venom​, a six-week exercise for a specialist unit which would deploy at short notice to undertake peacekeeping.

That required them to have specialist training, which included knowing how to deal with Molotov cocktails, as they would not have time to have pre-mission training.

Operation Venom culminated with two nights of mock riot training, with a squad of soldiers playing the role of rioters pitted against those being trained.

The incident happened on the second night, when trainees were sent in against rioters using water, flour and Molotovs.

The number of “rioters” was far larger, creating for a less structured environment.

A risk management plan was created, but not followed, with trainees not wearing flame-retardant clothing.

They had also been doused in fuel by a “rioter” who managed to grab a container of fuel and climb on a shipping container.

The Molotov that was thrown was supposed to smash on a cinderblock surface, but skidded and broke apart on a container near the doused trainees.

Two doused in fuel caught fire, with one setting a third person alight when they instinctively ran.

They were extinguished by safety personnel on hand.

Judge Jonathan Krebs​ said the risk management plan required the trainees to wear flame-retardant clothing, but those in command on the night changed that.

The person who threw the Molotov had no prior experience, which was another failure.

Finally, there was no adequate supervision of the fuel stock to stop the “rioter” pouring it.

Statements by the three soldiers, who all have permanent name suppression, were read out at the start of the hearing.

They suffered different physical injuries, ranging from superficial burns to having up to 20 per cent of their body, including their face, burnt.

One spent the best part of three weeks in hospital, needing three surgeries, and still suffered pain.

But the psychological scars were arguably the worst.

The soldier who suffered the most burns said the smell of fuel and panic attacks suffered when experiencing similar situations to the training exercise left him wondering if he could stay in the army.

Another soldier said he fell into a deep depression, drinking heavily so he could sleep without having nightmares.

The other soldier said he easily switched from being in a “zombie-like state” to being erratic, while also having to take a moment when watching films which could trigger it.

Chief of Army Major General John Boswell​ told the court what happened to the trio was absolutely not their fault and should never have occurred.

He had met with them to express regret, both personally and on behalf of the army, for what happened.

“We have an absolute obligation as an army to continue to support our people.”

The defence force’s duty to keep soldiers has been a concern going back to 2013, when a review which found various issues with its safety record was released in 2013.

Thirty-four personnel have died in work-related incidents since 2001, with only seven of those during combat.

There were also 54 serious injuries between 2016 and 2020.

WorkSafe has met regularly with the defence force to discuss its health and safety record, and charged it with various alleged and proven health and safety failures.

Their lawyer in court on Tuesday, John Rooney​, said the defence force took various steps to investigate and correct any issues.

It held its own Court of Inquiry and military police prosecuted various people through its own internal processes, resulting in fines and loss of seniority.

A moratorium was put on using incendiary devices during similar exercises after the incident, which remained in place today.

The army regularly reviewed its health and safety policies to ensure its was keeping soldiers safe, he said.