In a significant ruling, the Supreme Court acknowledged the societal and economic importance of unpaid domestic work by describing homemakers as “nation builders.” The court directed the inclusion of a new compensation element, termed “loss of domestic care,” in motor accident cases resulting in the death of homemakers. Justices Sanjay Karol and N. Kotiswar Singh increased compensation for a woman who died in a 2001 road accident in Haryana from Rs 8.43 lakh to Rs 62.77 lakh and outlined guidelines for determining compensation for homemakers.
The apex court emphasized that the contributions of homemakers go beyond traditional monetary assessments and have been undervalued in compensation laws. It highlighted the foundational role of homemakers in families and society, asserting that they should be acknowledged as “nation builders.” The case originated from a fatal motor accident in 2001, where the woman was traveling from Sirsa to Fatehabad.
Recognizing the challenges of valuing a homemaker’s contributions solely in monetary terms, the court introduced the concept of “loss of domestic care” as a new compensation category. It established a base monthly income of Rs 30,000 for homemakers without independent earnings, with a 10% increment every three years. This amount serves as a proxy for the homemaker’s monthly contribution in cases where their monetary input is limited.
Apart from addressing compensation issues, the judgment expressed concerns about delays in resolving motor accident claims. The court noted significant delays in both High Courts and tribunals in handling such cases, emphasizing the need for timely and fair compensation under the Motor Vehicles Act, 1988. It urged High Courts to prioritize pending motor accident claim appeals and streamline documentation processes to expedite case resolutions.
