On 1 August 1976 during the second lap at the very fast left kink before Bergwerk, Lauda was involved in an accident where his Ferrari swerved off the track, hit an embankment, burst into flames, and made contact with Brett Lunger's Surtees-Ford car. Unlike Lunger, Lauda was trapped in the wreckage. Drivers Arturo Merzario, Lunger, Guy Edwards, and Harald Ertl arrived at the scene a few moments later, but before Merzario was able to pull Lauda from his car, he suffered severe burns to his head and inhaled hot toxic gases that damaged his lungs and blood. In an interview with BBC Radio 5 Live ("I Was There -- May 21, 2019"; "Niki Lauda speaks in 2015"), Lauda said, "...there were basically two or three drivers trying to get me out of the car, but one was Arturo Merzario, the Italian guy, who also had to stop there at the scene, because I blocked the road; and he really came into the car himself, and uh, triggered my, my seatbelt loose, and then pulled me out. It was unbelievable, how he could do that, and I met him afterwards, and I said, 'How could you do it?!'. He said, 'Honestly, I do not know, but to open your seatbelt was so difficult, because you were pushing so hard against it, and when it was open, I got you out of the car like a feather...'." As Lauda was wearing a modified helmet because it didn't fit him properly, the foam had compressed and it slid off his head after the accident, leaving his face exposed to the fire. Although Lauda was conscious and able to stand immediately after the accident, he later lapsed into a coma. While in hospital he was given the last rites, but survived.
The 1976 F1 battle between Niki Lauda and James Hunt was dramatized in the film Rush (2013), where Lauda was played by Daniel Brühl. Lauda made a cameo appearance at the end of the film. Lauda said of Hunt's death, "When I heard he'd died age 45 of a heart attack I wasn't surprised, I was just sad." He also said that Hunt was one of the very few he liked, a smaller number of people he respected and the only person he had envied.