Observing that the notional income of a homemaker in motor accident compensation cases must take into account the multifarious services rendered by her for the family, the Punjab and Haryana High Court has ruled that it cannot be assessed merely on the basis of the minimum wages payable to an unskilled labourer. The court said the assessment must also factor in the savings generated by the services rendered by a homemaker and the invaluable emotional support she provides to her family.
Justice Harkesh Manuja made the observations while allowing a batch of appeals arising out of the same motor vehicular accident that took place in Karnal on April 11, 2022. Since the sole issue before the court was confined to the quantum of compensation awarded by the Motor Accident Claims Tribunal, the High Court reassessed the enhanced amount as Rs 14,79,284 in one of the matters
Before the High Court, counsel for the appellants contended that the Tribunal assessed the victim’s income on the basis of the minimum wages applicable to an unskilled labourer despite unrebutted evidence that the victim in question and another person were engaged in gainful occupations. It was submitted that the victim was earning Rs 40,000 per month by working as a tailor besides running a milk dairy.
Justice Manuja noted that the Tribunal had assessed the income of the deceased at Rs 9,803 per month on a notional basis in the absence of documentary evidence. The claimants had submitted that the victim was earning Rs 40,000 per month, but no documentary evidence in the form of ledger accounts or income tax records was placed on record to substantiate the claim. As such, the claimed income could not be accepted at its face value.
At the same time, Justice Manuja held that the value of the services rendered by her to the family could not be ignored while determining the notional income of a homemaker. “The notional income of house wife needs to be considered keeping in mind multifarious services rendered by her for the family; the expenses for cook service, maid servant service, housekeeping expenses and keeping in mind the savings accrued due to all these services,” Justice Manuja observed.
The Bench added the invaluable emotional support and the contribution of a housewife to her husband, children and in-laws could not be assessed in terms of money. Holding that these considerations were required to be kept in mind, the court observed: “Thus, keeping in mind the considerations, notional income of the deceased as housewife-cum-seamstress could not be assessed less than Rs 15,000 per month against an accident which took place on April 11, 2022.”
The High Court further held that future prospects were required to be added to the notional income of a homemaker in view of the Supreme Court judgment, wherein it was held that claimants in cases involving the death of a housewife were entitled to such benefit.
Applying the principles laid down by the Supreme Court in its judgments, Justice Manuja held that the victim was 55 years of age at the time of the accident. As such, her assessed income was liable to be enhanced by 10 per cent towards future prospects.
The court further held that compensation under the conventional heads was also required to be reassessed in view of the Supreme Court judgments. The appellants-claimants were held entitled to Rs 18,000 towards funeral expenses, Rs 18, 000 towards loss of estate and Rs 2.88 lakh towards parental consortium, calculated at Rs 48,000 each for six children. Allowing the appeals, Justice Manuja calculated the enhanced amount as Rs 14,79,284.
