The Apex Court observed that the homemakers’ notional income should be calculated in accordance with the work, labor and the sacrifices they make.
A three-judge bench comprising Justice N V Ramana, Justice Abdul Nazeer and Justice Surya Kant made this observation while passing a judgement in a case that involved insurance compensation.
The case was related to the death of a couple in 2014. The husband was a teacher, and the wife was a home maker who looked after the two children.
A tribunal had directed the insurance company to pay Rs. 40.71 Lakhs as compensation to the family due to an accident caused.
However, the Delhi High Court reduced the amount to Rs. 22 Lakh after the hearing.
Justice N V Ramana stated that,
“The sheer amount of time and effort that is dedicated to household work by individuals, who are more likely to be women than men, is not surprising when one considers the plethora of activities a housemaker undertakes.”
He further stated that a house maker does various things like cooking food, looking after the children, managing budgets and so much more thereby stating that the conception made that the house makers do not work or add economic value is a problematic idea which exists since so many years.
The appeal was allowed, and the bench directed the payment of Rs. 33.20 Lakh with 9% annual interest from 2014 to the family.