The footage was picked up by Australian, UK and US media.
The New York Post reported "a body bag makes a run for it" and to "watch out for corpses crossing".
Funeral Directors Association of New Zealand (FDANZ) chief executive Katrina Shanks is adamant that it would not have happened if there was a body inside. She said it was a rare mistake.
Dashcam footage shows a hearse with its boot flying open as it rounded a corner at the intersection of Sandringham Rd and Balmoral Rd yesterday.
Following closely behind is what the motorist thought was a body wrapped in a black body bag on a gurney, which rolls through the intersection at speed before coming to a halt at the side of the road.
The hearse, its boot still open, pulls up in front of the gurney and the driver runs out with his phone pressed to his ear.
The driver then picks up the body bag and puts it back in the hearse.
He is helped by a passing motorcyclist.
The hearse driver was returning to the funeral home on Dominion Rd with an empty body bag, Little said, but had unfortunately failed to close the boot properly before driving off.
When he accelerated at the intersection, the stretcher fell out.