Compensation for 2018 Vic bushfire victims

Victims of Victoria's St Patrick's Day fires in 2018 have begun receiving compensation from a $17.5 million settlement with electricity provider Powercor.

About 200 victims joined a class action following the fire in Terang, in the state's southwest, on March 17, 2018.

The fire, sparked by clashing power conductors, tore through more than 4000 hectares and significantly damaged homes and farms.

The Supreme Court recently approved the settlement reached in late 2019.

Maddens Lawyers Principal Kathryn Emeny said the victims are expected to receive more than 80 per cent of their compensable bushfire losses.

"These payments have come at a particularly important time for fire victims who are still recovering from the devastating impact of these fires, and along with the rest of the local community, are now facing increased challenges associated with COVID-19," she said in a statement on Friday.

Lead plaintiff in the class action Anthony Lenehan said it has been "very tough" since he lost all of his home contents in the fire.

"I have had a chat with some group members and the compensation means so much to us," he said.

"We didn't want the world, we are very humble people. What this outcome does is provide us with some closure."

Maddens Lawyers have also reached a $5 million settlement with Powercor for residents in nearby Garvoc, who were also impacted by the St Patrick's Day fires.