What happened
Reshma, a homemaker, was killed in a road accident on the Sirsa-Fatehabad road in November 2001. Her family claimed compensation, but the Motor Accident Claims Tribunal awarded only about Rs 2.4 lakh in 2003, valuing her unpaid household work at almost nothing. The family's appeal then sat in the Punjab & Haryana High Court for nearly twenty years - the case file was even destroyed in a 2011 fire. The matter finally reached the Supreme Court.
What the court held
The Supreme Court raised the compensation from about Rs 2.4 lakh to Rs 62.77 lakh and, more importantly for everyone, created a new compensation head called 'loss of domestic care'. It held that a homemaker is a 'Nation Builder' whose unpaid household work has real economic value that courts have long undervalued. From now on, in every motor-accident death claim involving a homemaker, a sum of Rs 30,000 per month must be added under this head (covering running the household, the loss of a mother's care for her children, and the loss of spousal or parental support). For a homemaker with no proven income that Rs 30,000 stands in as her notional monthly income; for one who also earns, it is added on top. The figure rises 10% every three years. The Court also gave directions to cut the long delays in accident claims.
The law behind it
Road-accident compensation is governed by the Motor Vehicles Act, 1988 - a beneficial law meant to deliver 'just and fair' compensation. The Court built the new 'loss of domestic care' head on the Constitution's values and earlier rulings (notably Pranay Sethi, which standardised compensation heads). It also pointed to Section 169 of the Act, which lets Tribunals adopt a quicker 'summary procedure'.
Practically, the Court directed that claims be backed by documents: official proof of date of birth (an Aadhaar card alone is not accepted for age), income proof such as ITRs or salary slips, and disability or medical certificates where relevant.
What this means for you
If a family member who runs the household dies in a road accident, the family is now entitled to a separate, guaranteed amount for the loss of that care - at least Rs 30,000 a month built into the calculation - even if that person earned no salary. Because of how accident compensation is calculated (multiplied over the years of support), this single change can increase the total several times over: here it took the award from about Rs 2.4 lakh to nearly Rs 63 lakh. It applies in every Motor Accident Claims Tribunal, High Court and the Supreme Court.
What to do
If you are claiming compensation for the death of a homemaker, make sure the 'loss of domestic care' head (Rs 30,000 per month) is specifically claimed and added. Attach the documents the Court now requires - official date-of-birth proof (Aadhaar alone is not enough for age), plus income, medical or disability proof where relevant - so the claim is not delayed. Because the compensation maths (multiplier, future prospects, deductions) is technical, an advocate or your nearest District Legal Services Authority can help you claim the full amount.
Source
Supreme Court of India, Justices Sanjay Karol and N. Kotiswar Singh, 11 June 2026. Citation: 2026 INSC 634. Read the full judgment.
Published 29 June 2026 · NyaySahay