Whenever it shall appear to the local defense council, or to such other agency or agencies as shall be charged, under the provisions of this act, with the responsibility of determining the benefits payable, that recovery of an injured civil defense volunteer is being prejudiced by virtue of his refusal to accept proffered medical and surgical treatment deemed necessary by the physician selected by them or by his failure or neglect to comply with the instructions of the physician in charge of the case, such modification may be made in the benefits payable under this act as shall be justified by the facts.
N.J.S. § App.A:9-57.12