Do you know that Law Courts presumes a housewife's minimum salary @ Rs.3000/- per month even if there is no evidence of such payments?
Such questions arise while determining compensation payable for death of a housewife in a car accident.
Insurance companies are bound in law to pay compensation in accordance with income of deceased only.
Now how to calculate income or salary of a housewife for various household work she keeps doing whole day in home? She cooks food, cleans house, teaches children and does a 1000 other domestic works.
The question puzzled Courts for many years.
But presently there is a rule developed that the courts will presume minimum income of housewife at Rs.36,000/- per year even if there may be no evidence of her work or salary and compensation can be worked out accordingly.
The law is still in developing stage. The Courts may increase such notional income in future judgements.
Haresh Raichura 10/2/17
