The Supreme Court on Thursday ruled that the unpaid domestic work performed by homemakers should be valued at a minimum of ₹30,000 per month when calculating compensation in motor accident death cases. The court described homemakers as “nation builders” and said their contributions to families and society deserve greater recognition.
A bench comprising Justices Sanjay Karol and N. Kotiswar Singh delivered the judgment while hearing an appeal related to a motor accident claim from Punjab. The court held that the common practice of treating homemakers' notional income on par with the wages of skilled or unskilled workers does not adequately reflect the value of domestic care and household responsibilities.
The case concerned the death of a woman named Reshma in a road accident in 2001. Her husband and three children had approached a Motor Accident Claims Tribunal seeking compensation. Although compensation was awarded in 2003, the matter remained in litigation for more than two decades before the Punjab and Haryana High Court decided the appeal in 2024.
While pronouncing the judgment, Justice Karol stated that the loss of domestic care should be monetised at a minimum of ₹30,000 per month, in addition to compensation components already recognised under existing Supreme Court guidelines. The bench also observed that homemakers play a vital role in the functioning of families and society and should be regarded as "nation builders."
The court expressed concern over the prolonged delay in resolving motor accident compensation cases. It said such matters should generally be decided within one year and urged the chief justices of all high courts to monitor these cases and issue administrative directions to ensure timely disposal.
The ruling marks a significant shift in how courts may assess compensation for the death of homemakers. Traditionally, compensation calculations often relied on minimum wage rates to estimate the value of unpaid household work. The Supreme Court noted that domestic care work cannot be fully measured using conventional labour market standards.
The judgment builds on earlier Supreme Court decisions that recognised the economic value of unpaid household work. However, the latest ruling goes further by setting a specific minimum benchmark of ₹30,000 per month for assessing the loss of domestic care.
Legal experts believe the decision could lead to higher compensation awards in motor accident cases involving homemakers and may influence future discussions on the economic recognition of unpaid domestic labour in India. The court reiterated that compensation under the Motor Vehicles Act should be fair and realistic, ensuring that dependants receive adequate relief for the loss they suffer.
Sources: Hindustan Times
