Claims quantified, mom’s love priceless
A Supreme Court ruling has recognised unpaid domestic and caregiving work as economically valuable in motor accident compensation.
- The Supreme Court has recognised unpaid domestic and caregiving work as economically valuable in motor accident compensation.
- The ruling creates a compensation category named Loss of Domestic Care within the motor accident compensation framework.
- The Supreme Court decided a 2001 Punjab motor accident compensation case that led to the notional valuation of domestic labour.
- The Court fixed a minimum notional monthly value of ₹30,000 for domestic and caregiving work and provided a 10% increase every three years.
The Supreme Court has recognised unpaid domestic and caregiving work as economically valuable while deciding motor accident compensation. The ruling matters because it changes how compensation law treats homemakers and may affect insurance claims, underwriting, and third-party premiums.
What happened
In a 2001 Punjab case, the Supreme Court held that a homemaker’s contribution cannot be treated as having zero economic value. The Court fixed a minimum notional monthly value of ₹30,000 for domestic and caregiving work, with a 10% increase every three years to reflect inflation.
UPSC may test the legal principle that unpaid domestic and caregiving labour has economic value and may also ask about its implications for gender justice, insurance liability, and motor accident compensation under the Motor Vehicles Act framework.
