In Belchem Philippines, Inc. v. Zafra, the Supreme Court addressed the crucial issue of determining when a seafarer’s disability qualifies as ‘total and permanent,’ entitling them to maximum compensation. The Court ruled that if a company-designated physician fails to issue a definitive assessment of a seafarer’s fitness to work or degree of permanent disability within the prescribed 120/240-day period, the seafarer’s condition is deemed a total and permanent disability. This decision underscores the importance of timely and comprehensive medical assessments in protecting the rights of Filipino seafarers.

Navigating the Seas of Uncertainty: When Does a Seafarer’s Injury Become a Permanent Anchor?

Eduardo A. Zafra, Jr., a seafarer employed by Belchem Philippines, Inc., sustained a knee injury while working on a vessel. After being repatriated to the Philippines, he underwent medical treatment, and the company-designated physician initially assessed his injury as a Grade 10 disability. However, more than 240 days passed without a final and definitive assessment of his fitness to return to work. This led Zafra to file a complaint seeking permanent total disability benefits, arguing that his injury rendered him unable to resume his seafaring duties.

The central legal question before the Supreme Court was whether Zafra’s injury should be classified as a partial or total and permanent disability. The determination hinged on whether the company-designated physician had issued a timely and definitive assessment of Zafra’s fitness to work. The petitioners, Belchem Philippines, Inc., argued that the initial assessment of Grade 10 disability should be the basis for compensation, limiting Zafra’s entitlement to US$3,590.73. They contended that the lapse of the 120/240-day period without a certificate of fitness did not automatically render Zafra permanently and totally disabled.

The Supreme Court, however, sided with Zafra, emphasizing the significance of a clear and conclusive assessment from the company-designated physician within the prescribed timeframe. The Court reiterated the definition of total permanent disability, stating that it refers to “the disablement of an employee to earn wages in the same kind of work that he was trained for, or accustomed to perform, or any kind of work which a person of his mentality and attainments could do.” It clarified that total disability does not require absolute helplessness but rather the inability to perform one’s customary job due to the incurred injury or sickness.

In contrast, the Court defined partial disability as the permanent partial loss of the use of any part of the body as a result of injury or sickness. The critical distinction lies in the employee’s capacity to continue performing their work despite the disability. The Court referenced Vicente v. Employees Compensation Commission, clarifying that:

x x x while permanent total disability invariably results in an employee’s loss of work or inability to perform his usual work, permanent partial disability, on the other hand, occurs when an employee loses the use of any particular anatomical part of his body which disables him to continue with his former work. Stated otherwise, the test of whether or not an employee suffers from permanent total disability is a showing of the capacity of the employee to continue performing his work notwithstanding the disability he incurred. Thus, if by reason of the injury or sickness he sustained, the employee is unable to perform his customary job for more than 120 or [240] days and he does not come within the coverage of Rule X of the Amended Rules on Employees Compensability (which, in a more detailed manner, describes what constitutes temporary total disability), then the said employee undoubtedly suffers from permanent total disability regardless of whether or not he loses the use of any part of his body.

The Court emphasized that determining whether a seafarer is fit to work despite a partial injury requires a definitive assessment and certification issued by the company-designated physician within the 120/240-day period. This certification should clearly state the seafarer’s fitness to resume work or the degree of permanent disability. Without such a declaration, the seafarer’s condition is considered permanent and total because their ability to return to their accustomed work within the applicable period cannot be established.

In Zafra’s case, the Court found that the assessment issued by the attending physician lacked the required definitiveness. The statement was “clearly devoid of any definitive declaration as to the capacity of Zafra to return to work or at least a categorical and final degree of disability.” Furthermore, the assessment was merely a suggestion from the attending doctor, not a conclusive assessment from the company-designated physician as mandated by Section 20 (B)(3) of the POEA-SEC, which states:

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.

Given the absence of a definitive assessment within the 240-day period, the Court concluded that Zafra was unfit to resume work on board a sea vessel. This, coupled with the fact that Zafra remained unemployed as a seafarer for more than 240 days from his repatriation, supported the finding of permanent total disability. The Court also noted that even the latest medical report indicated that Zafra continued to suffer from the same disability, reinforcing his claim for total and permanent benefits.

The Supreme Court underscored that the company-designated physician must provide a definite assessment within the 120/240-day period. Failure to do so results in the seafarer’s medical condition remaining unresolved, leading to a presumption of total and permanent disability. The Court cited several precedents, including Fil-Pride Shipping Company, Inc. v. Balasta, stating that “If he fails to do so and the seafarer’s medical condition remains unresolved, the latter shall be deemed totally and permanently disabled.” This principle reinforces the seafarer’s right to timely and accurate medical assessments.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer’s knee injury constituted a partial or total and permanent disability, determining the amount of compensation he was entitled to receive.
What is the significance of the 120/240-day period?	The 120-day period, extendable to 240 days, is the timeframe within which the company-designated physician must issue a final assessment of the seafarer’s fitness to work or the degree of permanent disability. Failure to do so results in the seafarer being deemed totally and permanently disabled.
What is the role of the company-designated physician?	The company-designated physician is responsible for providing a timely and definitive assessment of the seafarer’s medical condition, determining their fitness to work or the extent of their permanent disability.
What happens if the company-designated physician fails to issue a final assessment within the prescribed period?	If the company-designated physician fails to issue a final assessment within the 120/240-day period, the seafarer’s condition is deemed to be a total and permanent disability by operation of law.
What is the difference between partial and total permanent disability?	Partial disability refers to a permanent partial loss of the use of any part of the body, whereas total permanent disability refers to the inability to earn wages in the same kind of work the employee was trained for or accustomed to performing.
What evidence did the Court consider in determining Zafra’s disability?	The Court considered the absence of a definitive assessment from the company-designated physician, Zafra’s continued unemployment as a seafarer, and medical reports indicating that his condition remained unresolved.
Why was the ‘suggested’ assessment not considered a valid final assessment?	The ‘suggested’ assessment was not considered valid because it lacked a definitive declaration regarding Zafra’s capacity to return to work and was not issued by the company-designated physician.
Did the Court award attorney’s fees in this case?	Yes, the Court affirmed the award of attorney’s fees, recognizing that Zafra was forced to litigate to protect his rights and interests.

The Supreme Court’s decision in Belchem Philippines, Inc. v. Zafra serves as a strong reminder of the importance of adhering to the procedural requirements and timelines outlined in the POEA-SEC and the Labor Code. It reaffirms the rights of Filipino seafarers to receive fair and timely compensation for disabilities sustained while in service. This ruling also emphasizes the necessity for company-designated physicians to provide clear and definitive assessments of a seafarer’s condition to prevent ambiguities 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: BELCHEM PHILIPPINES, INC. v. EDUARDO A. ZAFRA, JR., G.R. No. 204845, June 15, 2015