In a landmark ruling, the Supreme Court has recognised the loss of domestic care provided by a homemaker as a separate and compensable head of damages in motor accident claims, holding that the contribution of a housewife extends beyond the household and plays a crucial role in nation-building. The court also quantified the value of such domestic services at a minimum of Rs 30,000 per month for the purpose of awarding compensation.
A bench comprising Justice Sanjay Karol and Justice NK Singh delivered the judgment while hearing an appeal arising from a motor accident compensation case involving the death of a woman in a road accident in 2001. The case stemmed from a challenge to a 2024 judgment of the Punjab and Haryana High Court, which had awarded over Rs 8 lakh in compensation to the victim's family, including her husband and three children.
Recognising the economic and social value of unpaid domestic work, the top court ruled that the loss suffered by a family due to the death or incapacitation of a homemaker deserves independent recognition 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 nation. So we have laid down the principles, and as a nation builder, we have housewife, we have quantified the amount that the loss of domestic care monthly income minimum in any event would be 30,000 per month," Justice Karol said while pronouncing the judgment.
The bench clarified that "loss of domestic care" would constitute an additional ground for compensation beyond the heads of damages already recognised by the Supreme Court in the landmark Pranay Sethi judgment.
"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 apex court said.
The court also recalled its 2024 observation that the notion that homemakers do not work is fundamentally flawed and held that their deemed income should not be less than the minimum wages notified for a daily wager.
Apart from laying down fresh principles on compensation, the top court issued directions aimed at expediting the disposal of motor accident compensation claims across the country.
Referring to Section 169 of the Motor Vehicles Act, which envisages a summary procedure before Motor Accident Claims Tribunals, the bench stressed that such proceedings should be conducted swiftly and efficiently.
"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 apex court further expressed hope that Chief Justices of all High Courts would actively monitor motor accident claim cases to ensure timely adjudication and effective implementation of the principles laid down in the judgment.