On 11 June 2026 the Supreme Court held that unpaid domestic labour must have independent economic value in motor accident awards, fixing a notional income of ₹30,000 per month with a 10% increase every three years and creating a distinct legal head called “loss of domestic care”.
Key Judicial Directives
- Loss of domestic care: A new compensable head recognising non-market household services beyond wages for hired help.
- Notional income floor: Minimum ₹30,000/month to be adopted by Motor Accident Claims Tribunals (MACTs).
- Triennial escalation: Automatic 10% increase in the baseline every three years to adjust for inflation.
- Dual income recognition: For homemakers with paid jobs, the ₹30,000 is additional to proven professional earnings.
- Distinct from other heads: Operates separately from loss of consortium, loss of estate and conventional damages.
Operational & Procedural Orders
- Adjudication timeline: Ordinary MACT claims to be decided within one year of filing.
- Appeal acceleration: High Courts to fast-track appeals pending over four years.
- Summary procedure: Directives to apply Section 169, Motor Vehicles Act, for expedited fiscal relief.
Legal and Empirical Context
- Case citation: Shishupal @ Shish Ram v. Surjeet (2026 INSC 634).
- Precedent link: Supplements principles in National Insurance Co. v. Pranay Sethi (2017) on heads of damages.
- Time-use evidence: NSO: women 15–59 spend >7 hours/day on unpaid domestic tasks; men <3 hours.
- Macro indicators: Unpaid caregiving estimated at ~15–17% of GDP; FLFPR ~31.7% cited as structural context.
IASPOINT Booster Facts
- Tribunal guidance: Notional income to be awarded irrespective of regional minimum-wage benchmarks.
- Statutory route: Section 169 MV Act provides legal basis for summary disposal of MACT claims.