Stawell woman Lorraine Nicholson, 68, was ordered to pay $90,000 to each of the two applicants. Judge Michael Bourke delivered his ruling at the County Court of Victoria on Thursday, after hearing the applications for compensation in late April.

"The circumstances of the offending were highly traumatic and distressing. A high degree of personal distress was inevitable," he said.

The court heard the applicants experienced persistent grief and sadness and post traumatic stress disorder symptoms four years after the day of the tragic collision.

Nichsolson's Jeep T-boned a Kia about 6pm on May 5, 2018 at the intersection of Stawell-Avoca Road and Ararat-St Arnaud Road. The Kia was driven by Hamilton's Elaine Middleton, 64, and carrying passengers Margaret Ely, 74, also from Hamilton, Heywood's Dianne Barr, 64, and Portland's Claudia Jackson, 72.

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The four women, who were returning home after attending a line-dancing competition in St Arnaud, died from their injuries at the scene.

A psychologist report revealed one of the compensation applicants continued to experience intrusive thoughts about the collision, hypervigilance, emotional withdrawal and a sense of bleakness. "Her prognosis for improvement is limited," the psychologist wrote.

The applicant said they had flashbacks, affected sleep, nightmares, anxiety, panic and depression and experienced what a psychologist described as an 'abnormal grief reaction'. The court heard the applicant continued monthly psychological counselling and has experienced a significant reduction to their quality of life.

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The second applicant described feelings of hopelessness, fatigue, social isolation and poor self caring and chronic PTSD symptoms including flashbacks, nightmares, loss of sense of safety and hypervigilance. A psychologist report revealed the applicant's problems with weight, sleep and sadness, reflective of a major depressive disorder, had become worse in the past six to 12 months.

"It is almost three years since (the tragedy) and if anything his symptoms have become worse," the psychologist wrote.

The court heard the applicant remained angry about the 'injustice' of the criminal proceeding. Judge Michael Bourke said he viewed the applicant's injuries and reduced quality life as a direct result of Nicholson's offending.

"The prolonged criminal proceeding meant reliving and revisiting the trauma of the collision and exacerbated feelings of grief and distress," he added.

Nicholson was sentenced to a four-year community correction with 500 hours of unpaid community work in April 2020 after she pleaded guilty to four charges of dangerous driving causing death. Her driver's licence was cancelled for eight years.

The finalisation of the case followed a seven-day trial held at the County Court in Ballarat before Judge Bourke in October 2019.

The jury found Nicholson not guilty of four counts of culpable driving causing death, but could not reach a majority verdict on four alternative charges of dangerous driving causing death and was discharged.

The court heard both compensation applicants had already received awards from the Transport Accident Commission. The applicants cannot be named for legal reasons.

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