'Homemaker Renders Varied Services To Family, Not Unskilled Labour': MP High Court Enhances Compensation After Woman's Death In Accident

The Madhya Pradesh High Court has enhanced the compensation granted to the kin of a woman who died in an accident, observing that the contribution of a homemaker cannot be equated with that of an unskilled labourer as she renders multifarious services to the family without fixed work hours or any leave.

This, the court said cannot be ignored while determining just compensation, and thereby increased the compensation amount to over Rs. 12 Lakh.

The bench of Justice Hirdesh held,

"With regard to the assessment of income, the learned Claims Tribunal assessed the income of the deceased at Rs.3,500/- per month on the ground that no documentary evidence regarding her income was produced. However, the record reflects that the deceased, being a lady, was also a homemaker. The contribution made by a homemaker cannot be equated with that of an unskilled labourer. A homemaker renders multifarious services to the family, manages the entire household without fixed working hours and without any leave. The economic value of such services has been consistently recognized by the Courts and cannot be ignored while determining just compensation".

The court was hearing an appeal filed by the family of the deceased Mamta under Section 173(1) of the Motor Vehicles Act, challenging award dated February 28 2019, passed by the Motor Accident Claims Tribunal seeking enhancement of the compensation amount.

The Tribunal had awarded compensation of ₹6,97,200 along with interest on account of the deceased's death. The counsel for the appellants claimed that the Tribunal had assessed the income of the deceased on the lower side.

The bench noted that the Tribunal assessed the income of the deceased at ₹3,500/- per month on the ground that no documentary evidence regarding her income was produced. However, the bench noted that she was also a homemaker whose contribution cannot be equated with that of an unskilled labourer.

The bench highlighted that a homemaker renders multiple services to the family, including managing the entire household without fixed working hours and without any leave. The economic value of such services has been recognized by the courts and cannot be ignored while determining just compensation.

Thus, the bench held that the Tribunal erred in assessing the income of the deceased at ₹3,500 per month. The bench further observed,

"Even in the absence of strict documentary proof of income from work of beautician, her income ought to have been assessed at least at the level of a semiskilled lady under the Minimum Wages Act, which, at the relevant time, was Rs.5,975/- per month".

Therefore, the bench fixed just and proper amount of compensation as ₹12,20,720/- and thus directed to provide additional compensation of ₹5,23,520/- over and above the amount already awarded.

Thus, the appeal was modified and partly allowed.

Case Title: Manoj v Arvind Kumar Jha [MA-2978-2019]

For Appellant: Advocate Ashok Kumar Yadav

For Union: Deputy Solicitor General Praveen Kumar Newaskar

Click here to read/download the Order