The Judgement of the Supreme Court regarding calculation of notional income for homemakers, 05/01/2021

  • 05/01/2021

The Judgement of the Supreme Court of India in the matter of Kirti & Others Vs Oriental Insurance Company Limited dated 05/01/2021. The matter related to the motor accident compensation of Rs. 22 lakhs awarded by the High Court to the claimant-appellants. The apex court increased the amount by Rs. 11.20 lakhs.

Justice N. V. Ramana said that "certain general observations can be  made regarding the issue of calculation of notional income for homemakers and the grant of future prospects with respect to them, for the purposes of grant of compensation".

The SC judgement of January 5, 2021 stated that grant of compensation on a "pecuniary basis" with respect to a homemaker is a settled proposition of law. The grant of compensation should take into account the gendered nature of housework and must recognize the work, labour and sacrifices of homemakers and a reflection of the changing attitudes. Various methods can be employed by the Court to fix the notional income of a homemaker, depending on the facts and circumstances of the case, the SC Judgement said.