They evacuated the woman, who had to swim a short distance to the IRB, leaving the man on board to look after the boat while the coastguard travelled north from Gisborne to tow it back to the port.
At the time of the incident, Constable Andrew Trafford of Tolaga Bay Police told the Gisborne Herald it was a "truly amazing rescue".
"It was a great result and could have very easily ended up as a double tragedy," he said.
The festive holiday could have been a lot different for the families of the couple who were grateful for the swift actions of the squad.
The boat skipper told the Herald at the time, "it was pretty traumatic, we feel lucky to be alive and just want to give our thanks to the New Zealand Coastguard, the surf club, police and other locals who helped us".
Principal rural fire officer Ray Dever said it was "one of the sea rescues of the year".
"The conditions out there were disgusting. It really changed late afternoon, mist and sea fog, and big seas rolling in."
Dever said the emergency services had done an "amazing job" not only to save the two on board and salvage the boat, but to prevent it from grounding on nearby Te Tapuwae o Rongokako Marine Reserve.
"The boat was carrying 2000 litres of diesel on board. If it had grounded on the marine reserve there could have been a huge amount of pollution."
The award was presented at the 2019 Surf Life Saving New Zealand Awards of Excellence held at Te Papa in Wellington.
Surf Life Saving senior executive Matt Warren said co-ordination and expertise needed by the squad members to carry out the difficult rescue are a good example of the education and skills required from lifeguards.
The awards celebrate the heroism, commitment and skills of people throughout the country who dedicate their time and effort to volunteering, and keep Kiwis safe on our beaches.
Warren said it has been another huge year for its volunteers, saving 702 people from life-threatening situations in the past year.
"The skill level of our people was on show again this season with great rescues, sporting feats and administrative excellence."
All 74 Surf Life Saving NZ clubs across the country are run by volunteers.