The Supreme Court held that a seafarer’s failure to comply with the mandatory post-employment medical examination by a company-designated physician, as required by the POEA-SEC, forfeits their right to claim disability benefits and sickness allowance. This ruling underscores the importance of adhering to procedural requirements in maritime employment contracts. The Court emphasized that unsubstantiated claims of requesting medical examinations are insufficient, and strict adherence to the POEA-SEC guidelines is essential to prevent abuse and ensure fairness in disability claims.

When a Seafarer’s Claim Sinks: Medical Exams and Maritime Law

This case revolves around the claim for disability benefits and sickness allowance filed by the late Enrique C. Calawigan, a Chief Engineer, against his employer, Loadstar International Shipping, Inc. (LISI). Calawigan alleged that his shipboard employment led to various health issues, including impaired vision and hearing loss, for which he sought compensation. The central legal question is whether Calawigan’s failure to undergo a post-employment medical examination by a company-designated physician, as mandated by the POEA Standard Employment Contract (POEA-SEC), bars his claim for disability benefits.

The Court of Appeals (CA) had reversed the decision of the National Labor Relations Commission (NLRC), awarding Calawigan sickness allowance and permanent disability compensation. However, LISI appealed, arguing that Calawigan voluntarily pre-terminated his contract and failed to comply with the mandatory medical examination requirement. This requirement, as stipulated in Section 20-B(3) of the POEA-SEC, mandates that a seafarer must submit to a post-employment medical examination by a company-designated physician within three working days upon their return, or risk forfeiting their right to claim benefits. The provision states:

Section 20-B.Compensation and Benefits for Injury and Illness.—

3. Upon sign-off from the vessel for medical treatment, the seafarer is entitled to sickness allowance equivalent to his basic wage until he is declared fit to work or the degree of permanent disability has been assessed by the company-designated physician, but in no case shall this period exceed one hundred twenty (120) days.

For this purpose, the seafarer shall submit himself to a post-employment medical examination by a company-designated physician within three working days upon his return except when he is physically incapacitated to do so, in which case, a written notice to the agency within the same period is deemed as compliance. Failure of the seafarer to comply with the mandatory reporting requirement shall result in his forfeiture of the right to claim the above benefits.

If a doctor appointed by the seafarer disagrees with the assessment, a third doctor may be agreed jointly between the employer and the seafarer. The third doctor’s decision shall be final and binding on both parties.

The Supreme Court emphasized the mandatory nature of this provision. The Court cited Coastal Safeway Marine Services v. Esguerra, stating that the company-designated physician is primarily responsible for assessing a seafarer’s disability. While a seafarer can seek a second opinion, compliance with the initial medical examination is crucial. Failure to comply without a justifiable cause leads to forfeiture of benefits.

In this case, Calawigan requested disembarkation before his contract expired. However, he failed to provide substantial evidence of undergoing a post-employment medical examination within the prescribed three-day period. The Court noted that his claim of requesting the examination from LISI was unsubstantiated. If a written notice is required for a physically incapacitated seafarer, a more tangible proof of compliance should be expected from someone who consulted a private physician for their condition. The Court held that self-serving declarations are insufficient to meet the standard of substantial evidence required in labor cases.

Even if the Court were to disregard the lack of compliance with the mandatory medical examination, it found fault with the CA’s reliance on Dr. Mendiola’s assessment of a Grade 3 disability rating. The POEA-SEC specifies conditions for an occupational disease to be compensable. Deafness, as an occupational disease, is listed for work involving excessive noise or compressed air. The POEA-SEC provides disability grades for ear injuries, with Grade 3 corresponding to complete hearing loss in both ears. Dr. Mendiola diagnosed Calawigan with “moderate bilateral sensorineural hearing loss,” not complete hearing loss. Therefore, the Court found that the CA erred in awarding disability benefits based on an incorrect assessment.

Furthermore, the Court addressed the issue of the Release and Quitclaim signed by Calawigan. While such documents are generally viewed with caution, they can be valid if the consideration is reasonable and the waiver is made voluntarily with full understanding. In this instance, no defect was proven in Calawigan’s waiver. Consequently, the Court disallowed the sickness allowance, disability benefits, and attorney’s fees awarded by the CA.

This ruling reinforces the importance of adhering to the procedural requirements outlined in the POEA-SEC. Seafarers seeking disability benefits must ensure compliance with the mandatory medical examination to avoid forfeiture of their claims. Employers, on the other hand, must facilitate these examinations to fulfill their obligations under the POEA-SEC. The case highlights the balance between protecting the rights of seafarers and preventing potentially abusive claims through strict adherence to contractual obligations.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer’s failure to undergo a post-employment medical examination by a company-designated physician, as required by the POEA-SEC, bars their claim for disability benefits and sickness allowance.
What does the POEA-SEC require regarding medical examinations?	The POEA-SEC requires seafarers to submit to a post-employment medical examination by a company-designated physician within three working days of repatriation, unless physically incapacitated with written notice provided. Failure to comply results in forfeiture of benefits.
What evidence did the seafarer provide to support his claim?	The seafarer presented a medical certificate from a private physician indicating moderate hearing loss and claimed he requested a medical examination from the employer, but lacked substantial evidence to support this claim.
What did the Supreme Court decide?	The Supreme Court reversed the Court of Appeals’ decision, ruling that the seafarer’s failure to comply with the mandatory medical examination requirement forfeited his right to claim disability benefits and sickness allowance.
Why did the Court reject the private physician’s assessment?	The Court rejected the private physician’s assessment because the POEA-SEC gives primary importance to the assessment of the company-designated physician. Also, the assessment of “moderate” hearing loss did not align with the Grade 3 disability rating, which requires “complete” hearing loss in both ears.
What is the significance of the Release and Quitclaim in this case?	The Release and Quitclaim, signed by the seafarer, acknowledged receipt of benefits. Although such documents are scrutinized, the Court found it valid because there was no proof of defect in the waiver.
What is substantial evidence in labor cases?	Substantial evidence is relevant evidence that a reasonable mind might accept as adequate to support a conclusion, even if other reasonable minds might disagree. It is more than a mere scintilla of evidence.
What are the implications of this ruling for seafarers?	Seafarers must strictly comply with the POEA-SEC’s mandatory medical examination requirement to ensure their eligibility for disability benefits. They should also document any requests for medical examinations from their employers.
What are the implications of this ruling for employers?	Employers should facilitate the post-employment medical examinations of their seafarers to comply with their obligations under the POEA-SEC. They should also maintain records of these examinations and any related communications with their employees.

This case serves as a crucial reminder of the importance of adhering to the procedural requirements outlined in maritime employment contracts. The Supreme Court’s decision underscores the need for seafarers to comply with the mandatory medical examination requirement and for employers to facilitate this process, ensuring fairness and preventing abuse in disability claims.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: LOADSTAR INTERNATIONAL SHIPPING, INC. vs. THE HEIRS OF THE LATE ENRIQUE C. CALAWIGAN, G.R. No. 187337, December 05, 2012