return to news
  1. Upstox
    /
  2. News
    /
  3. Personal Finance News
    /
  4. Latest Updates
    /
  5. Supreme Court fixes ₹30,000 monthly compensation for homemaker killed in motor accident; see details

Personal Finance News

Supreme Court fixes ₹30,000 monthly compensation for homemaker killed in motor accident; see details

rajeev kumar
By Rajeev Kumar

4 min read | Updated on June 11, 2026, 17:03 IST

Google
SelectUpstoxas yourPreferred news source
Copy link
Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

Supreme Court says it is ironic to describe a homemaker as dependent on earning members, when, in reality, the household’s functioning depends substantially on the homemaker.

supremee court homemaker judgement

The landmark judgement monetises a homemaker's efforts. | Image: Shutterstock

The Supreme Court of India on Thursday, June 11, 2026, directed relevant courts to add ₹30,000 per month under the head "loss of domestic care" while calculating compensation in the case of the death of a homemaker in motor accidents.

Open FREE Demat Account within minutes!
Join now

"It is in these circumstances, that we deem it appropriate to direct that when a Motor Accidents Claim Tribunal or the High Court or this Court is concerned with or a case involving the death of a homemaker...,a composite sum of ₹30,000/- shall be added under the head of ‘loss of domestic care’...," the apex court said in a judgement dated June 11, 2026.

"This determination shall be revised by 10%, cumulatively, every three years. It may be clearly stated that this amount of ₹30,000/- i.e., loss of domestic care is to be taken as a ‘standin’ (basic minimum monthly income) for monthly income in those cases where the homemaker does not have an input into the house, in strictly conventional, monetary terms," it added.

In cases where the homemaker is part of the workforce, the component of loss of domestic care shall be in addition to the monthly, according to the judgement.

This amount is to be provided to compensate for the three type of losses due the death of a homemaker:

  • The homemaker’s contribution towards smooth functioning of the household

  • The loss of maternal support for children

  • Loss of spousal support/the support and care of their child who is an adult, for the parents of the deceased

The apex court issued the above direction while delivering judgement in a two-and-a-half-decade-old case (Shishu Pal @Shish Ram & Ors vs Surjeet & Ors) in which a homemaker had died in a motor accident. The judgement provides additional compensation to the man who lost his wife in the accident case.

Compensation calculation

In this case, the apex court's calculated the compensation @₹30,000 per month to be provided to the deceased homemaker's husband as follows:

Compensation HeadsAmount (₹)
Loss of domestic care/Monthly Income30,000
Yearly Income3,60,000
Future Prospects (Age-35 years)40% of 3,60,000 = 1,44,000/-
3,60,000 + 1,44,000 = 5,04,000
Multiplier (16)5,04,000 × 16 = 80,64,000/-
Deduction (1/4)1/4 × 80,64,000 = 20,16,000/-
60,48,000/-
Loss of Consortium48,400 × 4 = 1,93,600
Loss of Estate18,150
Funeral Expenses18,150
Total62,77,900/-

In the landmark judgement that monetises a homemaker's efforts, the Supreme Court made some signification observations about women who stays at home to look after the household:

Ironic to says homemakers are dependent on earning members

In our view, it is ironic to describe a homemaker as dependant on earning members, when, in reality the household’s functioning depends substantially on the homemaker. The earning members are in fact solely dependent on the homemaker but alas, this reality does not receive the acknowledgment it deserves. Efforts have been made across fields to some success but yet undeniably the road is still long.

Shift in sensibilities

It must also be observed that this economic shift of valuing a homemaker’s efforts is not limited only to monetary aspects. There has been a shift in sensibilities - a married woman who takes care of the house is no longer called a housewife and has now been elevated to the deserved status of homemaker in recognition of the multitudes of facets that her presence in the home covers.

Women prepare human capital

Apart from the fact that contribution of women to the society extends far beyond biological reproduction, they are also largely responsible for the preparation of human capital on which the dreams of being the world’s largest economy among other things rest.
To put it directly and yet indirectly, a homemaker is like the potter and a home itself is a lump of clay. All shapes, sizes and designs are a result of the exact right mix of the mud with the water and the gentle caress of the hand to shape the clay into something that is wholesome, attractive and useful.
For all personal finance updates, visit here

About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

Next Story