Allegations that a Tourist Police officer aided the jet-ski operators to try to scam the group are also being made by the Australians, who have since left Phuket.
News of last week's dispute comes with the military authorities banning commercial activities from Phuket beaches and looking at the future of jet-skis, which were supposed to be phased out from Phuket's beaches years ago.
Melbourne resident Darren Hellmann and his wife Maxine were celebrating their 50th birthdays on Phuket with a group of 26 friends from their home city, Britain, New Zealand and Perth when the jet-ski crash almost caused a tragedy.
They'd hired nine jet-skis at Phuket's popular Patong beach on Tuesday and returned on Wednesday to hire five more.
The Hellmann's daughters Alana, 18, and Mikayla, 15, were riding one jet-ski that collided almost head-on with another jet-ski ridden by family friend Michael Doyle.
''Alana was at the controls and I think she just accelerated into the other jet-ski, just by mistake,'' Mr Hellmann said.
''The automatic band that switches the jet-ski off was hooked around the handle bars so she was left hanging on the jet-ski and broke her wrist.
''There was a large hole in the front of the jet-ski and if it had taken water and gone down, she would have been in serious trouble.''
As the Australians helped injured Alana and her badly bruised sister back to shore, the jet-ski operator who owned both machines was only concerned about the vehicles, Mr Hellmann said today from Singapore.
''Their priorities were a bit different to ours,'' Mr Hellmann said.
He helped his two daughters onto beach beds and organised transportation to Patong Hospital as Michael Doyle faced the jet-ski group.
''We all accepted responsibility and did not shy away from it,'' Mr Hellmann said. ''Alana's wrist was broken and Mikayla couldn't stand up.''
When Mr Hellmann rejoined the group at the local police station, he said, ''It was obvious we were being stitched up.''
The jet-ski operator originally demanded 150,000 baht for the damage.
A Tourist Police officer handled all the negotiations, even though the Australians gained the impression that the jet-ski operator spoke good English.
''There was obviously something shifty going on,'' Mr Hellmann said.
''We were given a well-scripted story by the officer and at one stage, he even threatened to fine Mick and I 3000 baht each.''
The Australians offered 35,000 baht in compensation, but the offer was turned down by the Tourist Police officer without reference to the jet-ski owner.
In talks that lasted for three-and-a-half hours, agreement was eventually reached on 43,000 baht being paid for the damage - well south of the original claim of 150,000 baht, and a subsequent claim of 71,000 baht.
''We actually had a ball on Phuket for the whole week we were there but the jet-ski dispute was a low point,'' Mr Hellmann said.
''Alana is likely to miss her netball finals and will take time off work.
''But the jet-ski operators wouldn't take responsibility for the failure of the jet-ski's safety release. That could have been much worse.''
The Australians continue to harbor the suspicion that the Tourist Police officer was in on the attempted shakedown.
''He was the only person who said anything on behalf of the operator,'' Mr Hellmann said.
''If we hadn't been around a bit and we were new to Phuket, some unlucky person could have been ripped off for a much larger amount. Blowed if we were going to get shafted.
''We stood our ground and threatened to take them to court.''
Mr Hellmann said he believed jet-ski disputes still occurred fairly often. ''There was another dispute taking place at the police station while we were there,'' he said.
Partial compulsory insurance does not cover the entire cost.
Often, disputes in Patong are about claims for an additional payment - usually 16,000 baht - to cover the time that the jet-skis might be out of the water, being repaired.
A third Hellmann daughter, Monique, 22, rode a jet-ski at Patong beach the previous day but wasn't there when her sisters crashed.
The Hellmann family comes from Tarneit in outer Melbourne while Mr Doyle lives nearby in Hopper's Crossing.