Homemaker's Work Now Has Monetary Value: Rs 30,000 A Month, Says SC

In a landmark judgment, the Supreme Court on Thursday held that the loss of domestic care provided by a homemaker due to her death or incapacitation in a motor accident constitutes a “distinct and compensable head of damages in motor accident claims”, while quantifying the value of such domestic services at a minimum of ₹30,000 per month.A Bench of Justices Sanjay Karol and Justice NK Singh observed that the “contribution of a homemaker extends beyond the household and plays a vital role in nation-building”.Pronouncing judgment in an appeal arising out of a motor accident compensation claim, the Supreme Court emphasised that the loss of domestic care suffered by a family due to the death or incapacitation of a homemaker deserves independent

recognition while determining compensation under the Motor Vehicles Act.“We are also of the view that the housewife contributes to the growth of the human being and the nation. The homemaker builds the nation. So we have laid down the principles, and as a nation builder, we have quantified the amount that the loss of domestic care monthly income in any event would be ₹30,000 per month,” Justice Karol said during the pronouncement.“The loss of domestic care would be an additional ground in addition to what has been laid down in Pranay Sethi. We only hope and trust that the homemaker will now acquire the acronym of nation-builder,” the Court observed.The landmark ruling came in an appeal arising from a motor accident claim in Punjab, where a woman died in a road accident in November 2001. Following her death, her husband and three children filed a compensation claim before the Motor Accident Claims Tribunal. The family had approached the Supreme Court after receiving compensation of just ₹8 lakh up to the High Court level.Justice Karol said that “loss of domestic care” would be an additional head of damages, over and above those recognised by the Supreme Court in the Pranay Sethi judgment, for awarding compensation in motor accident claims. “We only hope and trust that the word homemaker will now acquire the acronym of nation builder,” Justice Karol added.In a previous notable judgment delivered in 2024, the Supreme Court had observed that the notion that homemakers do not work was incorrect, and held that their deemed income must not be less than the minimum wages notified for a daily wage worker.The Court also requested the Chief Justices of all High Courts to monitor the progress of Motor Vehicles Act cases, stressing that the summary procedure provided under the law must be followed in letter and spirit.“We have issued certain directions and we hope and trust that the Hon’ble Chief Justices of all the High Courts would monitor all these cases and that what is laid down under Section 169 of the Act, namely that it be a summary procedure, would be followed in letter and spirit,” the Bench said.The Court also issued directions aimed at ensuring the expeditious disposal of motor accident compensation claims, reiterating that tribunals must adhere to the statutory framework designed for speedy adjudication.