What started as fun on the water, turned into a horrifying emergency incident as a boat caught on fire with a Wagga family onboard.
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Riverina Police District Detective Acting Inspector Phil Malligan said a mother, father and their two daughters were testing out a boat on the waters of Lake Albert when the pleasurecraft caught fire.
He added that the family told police they had bought the vessel second-hand, and it was their first time taking it out.
"It is under investigation," Inspector Malligan said.
"The family had only purchased the boat a week ago, and we believe that it was a fault in the motor that caused the boat to exploded.
"The family, luckily enough, were able to jump into the safety of water where they waded across to the edge ... with the aid of a ski biscuit they had."
Inspector Malligan said the vessel was a ski boat, with an inbuilt motor.
He added the eight-year-old girl suffered burns to eight per cent of her body, while her older sister, 11, sustained injuries to six per cent of her body.
"Both children were wearing life jackets which was good," Inspector Malligan said.
"Both girls have burns on their legs as well as their arms.
"The father who was in charge of the boat at the time has facial burns, and the mother only has minor burns to her body."
The parents were discharged on Wednesday night, both the young girls remain in hospital.
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Inspector Malligan said it was miraculous that they were able to escape, despite suffering injuries.
He said that an investigation is underway into the cause of the explosion.
"There are some bollards in the vicinity of where the boat sunk and at," Inspector Malligan said.
"We would be interested in retrieving the boat from Lake Albert and having it mechanically examined."
Fire Rescue NSW, NSW Police, NSW Ambulance, the SES and the Volunteer Rescue Association all attended the incident last night.