Why did the SC quantify labour of homemakers?, Pg12

Key Highlights:

• The Supreme Court on June 11 ruled that unpaid domestic labour by homemakers must be assigned an independent economic value in motor accident death cases.
• A minimum notional income of ₹30,000 per month was fixed for this purpose.
• A new compensation head, "loss of domestic care," was created, mandating a 10% increase every three years.
• The ruling stemmed from an appeal in a motor accident claim from Punjab, where the deceased's family sought enhanced compensation.
• The Court also directed High Courts to prioritize older motor accident compensation appeals and assess the need for additional benches.

Detailed Insights:

• The ruling arose from a case involving the death of a woman named Reshma in a 2001 road accident, where her family was initially awarded ₹2.42 lakh.
• The Punjab and Haryana High Court had enhanced the compensation to ₹8.43 lakh in December 2024, but the family appealed to the apex court for a higher amount.
• The Supreme Court ultimately enhanced the compensation for the deceased's family to ₹62.78 lakh, considering the loss of maternal care and spousal companionship.
• The Court emphasized that routine household tasks performed by homemakers are crucial for supporting the paid workforce and enabling economic productivity.
• It noted that these contributions are rarely accounted for in conventional economic indicators like GDP, describing homemakers as architects of India’s "human capital".
• This ruling marks the first time the Supreme Court has prescribed a concrete minimum benchmark for assessing the loss of domestic care, moving beyond previous cautions against devaluing homemakers' services.
• The Court highlighted that the welfare objective of the Motor Vehicles Act, 1988, is often frustrated by prolonged litigation, with cases pending for years.

Key Concepts Involved:

• Notional Income: An imputed income assigned to individuals, like homemakers, who do not have a formal, measurable income.
• Loss of Domestic Care: A newly established head of compensation in motor accident claims, recognizing the economic value of a homemaker's unpaid services.
• Motor Accident Claims Tribunal (MACT): Quasi-judicial bodies established under the Motor Vehicles Act, 1988, to adjudicate claims for compensation arising from motor vehicle accidents.
• Human Capital: The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.