The family of Halatau Naitoko, who was accidently shot and killed on Auckland's north western motorway in 2009, will receive $125,000 additional compensation from the police.
Assistant Commissioner Allan Boreham said at a press conference that police were giving $100,000 compensation for the hardship and suffering caused by the 17 year-old's accidental death and $25,000 towards their legal costs.
The payment is in addition to the $100,000 given to the family shortly after Halatau's death - taking the total compensation to $225,000.
Mr Boreham said his deepest sympathies were with Mr Naitoko's family.
"Police deeply and sincerely regret the accidental shooting of Mr Naitoko," Mr Boreham said.
"For our officers, who dedicate their working lives to helping people, Halatau's death was everything they were trying to prevent."
Mr Naitoko's mother, Ivoni Fuumaono, thanked police for their support.
But she said her son's life was priceless and that no amount of money would bring him back.
Mr Naitoko died at the wheel of his courier van on January 23, 2009, during a shootout between police and a man they were chasing, Stephen McDonald.
McDonald, fueled by methamphetamine, broke into three different homes, pointed a gun at bystanders, stole cars and led a police on a high-speed pursuit in suburban streets.
He was later convicted and sentenced to 13 years after he admitted 23 charges, including firing at police, possessing a firearm, aggravated robbery and unlawfully getting into a motor vehicle.