The widow of an American tourist killed in a plane crash while they were honeymooning in Queensland will receive $500,000 compensation under a court settlement to be filed today.

But Laura Le Gallo yesterday accused the airline insurer of dragging out the case, and sharply criticised the absence of a legal mechanism in Australia for her to pursue damages over possible recklessness.

Mrs Le Gallo’s husband of just five days, Christopher, 33, was among six people who died when a six-seat Piper Cherokee crashed on Hamilton Island on September 26, 2002.

He was supposed to have accompanied his wife on a flight that landed safely on nearby Lindeman Island, but gave up his seat to do a good turn for a New Zealand family which had wanted to travel together.

While the Australian Transport Safety Bureau reported the accident had been caused by a low altitude stall after take-off, it also found that consumption of alcohol and marijuana by Island Air Taxis pilot Andrew Morris might have been a contributing factor.

Having had less than seven hours’ sleep the night before, it was possible the 27-year-old pilot had been fatigued and hung-over, impeding his ability to fly the aircraft.

Mrs Le Gallo’s lawyers had assessed the loss arising from the death of her husband – an analyst at a US defence technology firm with promising career prospects – at more than $4 million.

But the maximum payout under Australian law was capped at $500,000 and, unlike in overseas jurisdictions including the US, there was no provision for her to seek additional damages for recklessness by the airline or the pilot.

Mrs Le Gallo said yesterday visitors to Australia should be warned about this.

It was a shock to me to find that unlike many other countries, full compensation is denied to victims in Australia even in cases of reckless behaviour,” she said in a statement issued through her Brisbane lawyer, Peter Carter.

“Australia should warn all foreign tourists that its legal system protects wrongdoers from accountability and does not allow expeditious and full compensation even if an air accident is caused by airline or pilot recklessness.”

Although she was relieved that her compensation claim had been settled, Mrs Le Gallo said the airline insurer had “prolonged the case unnecessarily.

All information had been provided to the insurer more than 12 months ago but the case was only settled “nearing the door” of the Queensland Supreme Court, which was to try it from this Friday.

An order for payment of $500,000 would instead be filed in court today, Mr Carter said.

But the case was far from closed as far as Mrs Le Gallo was concerned.

Mr Carter said he had made submissions on her behalf to the State Coroner on the conduct of the forthcoming inquest into the crash.

Despite her ordeal, Mrs Le Gallo said she still held fond memories of Australia and was grateful for the help and compassion she had received.