Former senior constable David Paul Caffrey was one of the first responders when a methamphetamine-affected driver Byron Williams slammed his Holden Commodore into a tree in February 2013.

The high-speed crash left him pinned in the wreckage by his legs and gasping for breath.

As Mr Caffrey rendered first aid and encouraged Mr Williams to fight for his life he noticed bloody matter on his hands.

"He thought that it had probably come from the inside of Williams' head," court documents said.

Despite this, Mr Caffrey stayed with the dying man until paramedics arrived.

He then consoled Mr Williams' parents at the accident site, eventually taking his mother by the hand and saying "come on, let's go to say goodbye" after paramedics said there was no hope.

Mr Caffrey was previously awarded a $1,092,947.88 damages payment from AAI Limited for the ongoing trauma he suffered after the crash.

This included psychological symptoms such as insomnia, anxiety, depression and specific post-traumatic symptoms such as flashbacks and reliving experiences.

The insurance company challenged the payout, saying it could lead to more claims and these would be better handled by employers, not driver's insurers.

But the Queensland Court of Appeal on Tuesday dismissed the appeal, saying it wasn't the court's job to analyse such matters.

AAI had attempted to argue that Mr Caffrey wasn't entitled to compensation from the negligent driver because he attended the crash in the course of his duties.

Despite accepting the former police officer had proved the common law requirements that made it liable, AAI said his profession denied him a right to claim because of the potential policy ramifications.

If he were allowed to claim it would lead to a new class of prospective plaintiffs, which would include police officers, firefighters, paramedics, doctors and nurses, it said.

It said if a duty of care was extended to them it would be an "inapt" way for dealing with any psychiatric harm suffered.

"An obvious and apt tool to deal with the prospect of such harm is by recourse to the liability of the employer of these prospective plaintiffs," AAI told the court.

It could also lead to problems for first responders who attend uninsured victims because they could not recover any compensation from them, it said.

But the full bench of the court disagreed saying it wasn't the Court of Appeal's job, when deciding a question of law, to undertake a policy analysis of the common law related to civil liability.

"(Or to) allow policy to determine the outcome rather than to apply the principles that have been established in relevant case law," Justices Walter Sofronoff, Philip McMurdo and Anthe Philippides said.

AAI is part of the Suncorp Group.

Australian Associated Press