NSW driver charged over cliff car crash

The injured driver of a car that plunged down a cliff on a popular NSW beach has been refused bail in a bedside hearing.

A mother and her baby were lucky to escape with their lives on Thursday morning when a Volkswagen Golf drove off a cliff and landed on Newcastle's Bar Beach.

The 40-year-old mother, who was on the beach below the cliff, was hit by the car and suffered a serious leg injury.

Police clarified on Friday her 18-month-old child narrowly avoided being struck, escaping with a minor head injury and scratches.

The driver, a 46-year-old woman, was also taken to John Hunter Hospital with multiple fractures.

"It's a miracle no one was seriously injured," NSW Ambulance Inspector Jason Saper said in a statement.

"They are very lucky to be alive, it was a significant fall from the cliff."

Despite remaining in a serious condition, police placed the driver under arrest on Friday following inquiries.

The Wallsend woman was charged with driving in a manner dangerous causing grievous bodily harm and refused bail from her hospital bed.

She is scheduled to face Newcastle Local Court next week.