Victoria's Supreme Court has approved a $494 million payout to victims of the deadly 2009 Black Saturday bushfires, in what is considered to be the biggest class action in Australia's legal history.

The blaze killed 119 people, destroyed 125,000 hectares and more than 1,000 homes.

The action, which involved about 5,000 people, was taken against power distributor SP AusNet and asset manager Utility Services Group. The defendants have denied liability.

The case came about after the Victorian Bushfires Royal Commission found the Kilmore East-Kinglake bushfire was caused by an ageing SP AusNet power line.

Parties including SP AusNet and the Victorian Government had agreed to the $500 million settlement but it required the court's approval.

In his summary, Supreme Court Justice Robert Osborn said the decision to approve the settlement was taken in part because it would result in substantial compensation for group members.

"The settlement offers group members a series of material advantages by the way of finality, minimisation of further stress and anxiety, advancement of payment and containment of costs," he said.

Justice Osborn said the agreement was "in the range of reasonable settlements".

He also said only two "relevant" objections to the deal were received out the 5,000 people involved in the class action.

"Those objections do not demonstrate by any evidence or otherwise that the settlement should be rejected," he said.

Deal will help alleviate hardships facing bushfire victims: lawyer

The settlement is more than double the previous highest Australian class action settlement of $200 million.

SP AusNet has agreed to pay $378.6 million, while Utility Services Corporation Ltd will pay $12.5 million.

The Victorian Government, which includes Victoria Police and the Country Fire Authority, have agreed to pay $103.6 million.

Rory Walsh, from Maurice Blackburn Lawyers, said the settlement would bring justice to many.

"While we can never compensate people for what they've lost, particularly those who've lost loved ones, we have recovered in this proceeding $494 million," he said.

"We hope that that money can help people alleviate some of the hardships that they continue to experience today."

A total of 10,500 individual claims and 1,750 personal injury claims have been made.

The claims are largely split into two broad categories, property loss and personal injury losses.

Settlement brings 'a sense of comfort'

Carol Matthews lost her son Sam in the fires but she kept a five cent piece that she found on his key ring with her throughout five years of hearings and meetings.

"I've held on to it knowing at some stage that he would help us to get some justice for all those people that died," she said.

"It isn't just about Sam, it's about the other 119 people that died on that day when they needn't have."

Ms Matthews said the settlement brings "an element of relief and a sense of comfort" and will help ease the financial struggles of the victims of the fire.

But she said power companies like SP Ausnet must heed the finding.

"I'm really hopeful that the evidence that was presented at the trial will encourage all the parties involved to renew and review their standards of operation," she said.

"And [I] would like to say that the electricity companies, whether it be SP Ausnet or the newly-branded Ausnet Industries, need to take into account the rationale behind this record breaking class action settlement and they need to do everything they can to stop another avoidable disaster from destroying so many lives."

Mr Walsh said the assessment of the claims will begin in late January or February.

"We estimate that we will be able to assess each claim and distribute the money within 18 months," he said.