The Supreme Court on Thursday held that the unpaid work carried out by homemakers should be valued at a minimum of ₹30,000 per month when calculating compensation in motor accident death cases. The court also described homemakers as "nation builders", underscoring their vital contribution to families and society.
A bench comprising Justices Sanjay Karol and N Kotiswar Singh said the long-standing practice of assessing a homemaker's contribution based on minimum wages paid to skilled or unskilled workers does not adequately reflect the true worth of domestic care and household management.
Supreme Court sets a new standard for compensation
As per a Hindustan Times report, announcing the ruling, Justice Karol said, "We have evolved a new principle and laid down that loss of domestic care should be monetised as a minimum ₹30,000 per month, in addition to all other available avenues under the Supreme Court judgment in the Pranay Sethi case."
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The judgment arose from a compensation dispute linked to a road accident in Punjab in November 2001, in which a woman named Reshma lost her life. Her husband and three children sought compensation through the Motor Accident Claims Tribunal. Although an award was passed in 2003, the matter remained tied up in litigation for years, with the Punjab and Haryana High Court deciding the appeal only in December 2024.
'Nation builders': Court recognises homemakers' contribution
The bench observed that the term "homemakers" should be accorded the status of "nation builders", highlighting the indispensable role played by women in maintaining households and supporting family welfare.
The ruling marks a significant shift in how courts assess financial loss suffered by families after the death of a homemaker. Instead of relying solely on minimum wage calculations, courts will now have a fixed benchmark that recognises the economic value of unpaid domestic work.
Concern over delays in accident claims
The Supreme Court also expressed concern over the prolonged delay in resolving motor accident compensation cases."Such cases should be decided within a year usually," the bench said.
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The court requested the chief justices of all high courts to monitor pending motor accident claim matters and issue necessary administrative directions to ensure timely disposal.
The judgment builds on earlier Supreme Court decisions, including Kirti vs Oriental Insurance Co Ltd (2021) and Arun Kumar Agrawal vs National Insurance Co Ltd (2010), which acknowledged the economic significance of homemakers' contributions.
