In a landmark ruling, the Supreme Court has said that the unpaid domestic work performed by homemakers must be assigned a minimum value of Rs 30,000 per month while calculating compensation in motor accident death cases.

Calling homemakers ‘nation builders’, the court said that their contribution to families and society cannot be ignored because it does not generate a salary.

Supreme Court recognises value of homemakers’ work

The ruling came while hearing an appeal related to the death of a woman named Reshma, who lost her life in a road accident in Punjab in November 2001. Her husband and three children had approached the Motor Accident Claims Tribunal seeking compensation.

Although the tribunal awarded compensation in 2003, the case remained tied up in litigation for more than two decades. The Punjab and Haryana High Court delivered its verdict only in December 2024.

‘They are nation builders’, says SC

The Supreme Court observed that homemakers play an important role in society and should be treated as “nation builders.” It said domestic care work has a measurable economic value and cannot be equated with conventional labour based on minimum wages.

The court ruled that a minimum monthly income of Rs 30,000 should be considered while calculating compensation for the death of a homemaker in road accident cases.

Supreme Court relied on earlier judgments

The bench referred to previous landmark rulings, including the 2021 case of Kirti vs Oriental Insurance Co. Ltd. and the 2010 case of Arun Kumar Agrawal vs National Insurance Co. Ltd.

In those judgments, the apex court had already acknowledged that the services rendered by homemakers have economic value despite being unpaid.

The new ruling further strengthens that principle by providing a concrete benchmark for compensation calculations.

What did the court say about delay in compensation cases?

Expressing concern over the delay in the present case, the Supreme Court said motor accident compensation claims should normally be decided within one year.

The bench urged Chief Justices of all High Courts to monitor such cases and issue necessary administrative directions to ensure timely disposal.

According to the court, the welfare objective of the Motor Vehicles Act gets defeated when victims and their families have to wait for decades to receive compensation.

How will the new rule affect compensation cases?

The benchmark of Rs 30,000 per month will work alongside the principles laid down in the landmark Pranay Sethi judgment of 2017, which governs compensation under the Motor Vehicles Act.