Fourteen people, all from the same family, have been rescued after their boat caught fire and overturned off the coast of Gladstone this morning.

Key points: Thirteen people were rescued by Water Police, another was rescued by helicopter

Thirteen people were rescued by Water Police, another was rescued by helicopter Inspector Darren Somerville said no-one was seriously injured in the accident

Inspector Darren Somerville said no-one was seriously injured in the accident All patients have been assessed and are in a stable condition

Thirteen people who were involved in the "marine accident" were rescued by Water Police and a 14th person, a 74-year-old man, was winched to safety by a rescue helicopter.

Two patients were transported to Gladstone Hospital — one with smoke inhalation and post-immersion symptoms, and the second with a chest injury, according to Queensland Ambulance.

Both patients are now in a stable condition and all other patients have been assessed by paramedics.

It is understood the boat was the MV Norval, which overturned and caught fire about 9.00am at Rock Cod Shoal, about 45 kilometres off Gladstone.

The 14 people on board initially evacuated onto a dory which then began taking on water.

The crew of the Capricorn Rescue helicopter coming to the aid of a person from the stricken boat. ( Supplied: Capricorn Rescue )

One of the men on board, Kevin Alexander said he initially hesitated when his son, the skipper, called for the group to "abandon ship".

"I didn't want to go as quick as he did, but lucky we went because when we did, it was up [in flames] and gone," Mr Alexander said.

"Getting off the big boat onto the little boat was the hardest part of all, it's so rough and the tender boat's flying up and dropping, the waves were probably about two-and-a-half metres.

"[I thought,] just hang on, and look for that chopper in the sky."

Mr Alexander described the sense of relief the occupants felt when help arrived.

Kevin Alexander praised the rescue crews for their efforts. ( ABC News: Jemima Burt )

"They were cheering and putting the thumbs up and 'wahooing', I think they thought 'well, we've got a second chance here'."

The boat's skipper, Troy Alexander said everyone was in high spirits and happy to be alive.

"We hit survival mode and got off the boat as quick as we could," he said.

He said he was "shattered" to watch the boat burn and sink at sea.

"We had to get away because we had about 200 or 300 litres of unleaded on there so we were waiting for the bang," he said.

Inspector Darren Somerville said no-one was seriously injured, despite things taking a turn for the worse.

"All persons were located with life jackets on, they climbed into a dinghy however the dinghy overturned or took on water and many of them ended up in the water," he said.

"They stuck together and were located within about an hour and 15 minutes by the water police."

He said it was not clear what caused the fire but the matter would be investigated by Maritime Safety Queensland, AMSA and Queensland Police

'We thank our lucky stars'

Mr Alexander said he had four grandchildren on the boat, two of his sons, a brother and a nephew.

"I was just worried about the grandchildren you know, I wasn't worried so much about us," he said.

"We had another bloke there, Noel Connor, he's got a sore leg, but the helicopter took him. He was the worst one of the lot, he was having a bit of trouble swallowing water.

"We laid him across the bottom of the boat when it was upside down and we all just hung onto the side of it.

"Daytime is better than night time, so we thank our lucky stars for that one."

Mr Alexander also praised the rescue crews for their "perfect" efforts.

The boat caught fire around 9:00am about 20 kilometres off Gladstone. ( Supplied: Queensland Police Service )

The boat's owner Ron Murphy operates a charter business out of Gladstone and said the occupants were all members of the same local family.

"It was supposed be a trip where the whole family could get together and spend some time in a loving, family atmosphere," he said.

Mr Alexander said the fishing trip was initially planned so the family could spend time together after his brother was diagnosed with cancer.

"We wanted to get out and take my brother who's struggling with cancer but he's had to start chemo.

"We were bringing him fish home, but we didn't get time to get that off either," he said.

The MV Norval was an 18-metre vessel that could cater to 11 passengers with three crew.

"I feel sorry for old Ronnie [the owner], it's a beautiful old boat and it's gone now," Mr Alexander said.

Two helicopters were initially sent to the scene.

Gladstone Volunteer Marine Rescue chief controller, Michael McCaullay praised the men for quickly activating their EPIRB (Safety locator) and following marine safety procedures.

"We've managed to not lose a life at sea, which is fantastic," he said.