- Supreme Court ruled homemakers’ unpaid work valued ₹30,000 monthly.
- Ruling acknowledges homemakers’
- Originating from 2001 accident, court urged timely compensation process.
In a landmark judgment with significant implications for motor accident compensation claims across India, the Supreme Court on Thursday ruled that the unpaid domestic work performed by homemakers must be valued at a minimum of ₹30,000 per month when calculating compensation for their deaths in road accidents.
A bench comprising Justices Sanjay Karol and N Kotiswar Singh held that the long-standing practice of equating homemakers’ notional income with the wages of skilled or unskilled labourers fails to reflect the true economic and social value of domestic care work.
Announcing the ruling, Justice Karol said the court had evolved a new principle under which the loss of domestic care services would be monetised at a minimum of ₹30,000 per month, in addition to other compensation components available under existing legal principles, reported Hindustan Times.
Supreme Court Calls Homemakers ‘Nation Builders’
Underscoring the importance of unpaid domestic labour, the bench observed that homemakers play a foundational role in families and society and deserve greater recognition.
The court remarked that the term “homemakers” should attain the status of “nation builders”, acknowledging their contribution beyond conventional economic measures.
The observation reflects the judiciary’s growing recognition that domestic care work, though unpaid, generates substantial social and economic value that supports households and the broader economy.
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Ruling Emerged From Punjab Accident Case
The judgment arose from an appeal linked to a road accident in Punjab in November 2001 in which a woman named Reshma lost her life.
Following her death, her husband and three children approached the Motor Accident Claims Tribunal seeking compensation. Although the tribunal delivered an award in 2003, the litigation continued for years before the Punjab and Haryana High Court finally decided the appeal in December 2024.
The Supreme Court took note of the prolonged delay, pointing out that more than two decades had passed since the accident occurred.
Court Expresses Concern Over Delayed Compensation
The bench emphasised that motor accident compensation cases should ordinarily be resolved within one year.
Expressing concern over the prolonged pendency of such matters, the court said victims and their families should not have to wait years for compensation.
To address the issue, the Supreme Court requested the chief justices of all high courts to monitor motor accident claim cases and issue administrative directions to ensure timely disposal within the prescribed timeframe.
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Shift From Existing Compensation Practice
The ruling is expected to influence compensation calculations nationwide. Courts have traditionally assigned homemakers a notional income based on prevailing minimum wage rates, often placing them on par with skilled or unskilled workers.
The Supreme Court held that such an approach inadequately reflects the nature and value of domestic care work, which extends far beyond conventional labour-market standards.
By introducing a minimum benchmark of ₹30,000 per month, the court has sought to create a more realistic framework for assessing the loss suffered by families when a homemaker dies in an accident.
