In the case of Marlow Navigation Phils., Inc. v. Cabatay, the Supreme Court clarified that a seafarer’s disability claim is primarily governed by the assessment of a company-designated physician or, in certain cases, a doctor mutually agreed upon by the employer and the seafarer’s union. The Court emphasized that seafarers cannot claim full disability benefits merely based on their own assessment of their inability to work, especially when a company-designated physician has already provided a disability rating and the seafarer refuses to undergo examination by a mutually appointed doctor. This ruling ensures that disability assessments are based on objective medical findings and established procedures, rather than solely on the seafarer’s subjective claims.

Navigating the Seas of Seafarer’s Rights: When Medical Assessments Chart the Course

Wilfredo Cabatay, an able seaman, sustained injuries while working on a vessel managed by Marlow Navigation. Upon repatriation, he was examined by the company-designated physician, Dr. Tay, who assessed him with a 36% disability. Cabatay, however, claimed entitlement to permanent total disability benefits, arguing that his injuries rendered him unfit for future sea service. The Labor Arbiter initially sided with Cabatay, but the National Labor Relations Commission (NLRC) reversed this decision, relying on Dr. Tay’s assessment. The Court of Appeals (CA) then reinstated the Labor Arbiter’s ruling, stating that Cabatay’s continuous disability for more than 120 days automatically qualified him for permanent total disability benefits. This divergence in rulings set the stage for the Supreme Court to address the critical issue of how to properly determine disability benefits for seafarers.

The Supreme Court, in its analysis, emphasized the primacy of the Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC) and any applicable Collective Bargaining Agreement (CBA), such as the Total Crew Cost Fleet Agreement (TCC-FA) in Cabatay’s case. These documents serve as the “law between the parties,” dictating the rights and obligations of both the seafarer and the employer. The Court highlighted that under the POEA-SEC, the company-designated physician plays a crucial role in assessing the seafarer’s fitness to work or the degree of disability.

Under the 2002 POEA-SEC, it is the company-designated physician who declares/establishes the fitness to work or the degree of disability of a seafarer who is repatriated for medical reasons and needs further medical attention.

The TCC-FA further stipulates that disability assessments should be conducted by a doctor mutually appointed by the employer and the International Transport Workers’ Federation (ITF), the seafarer’s union. This provision aims to ensure impartiality and fairness in the assessment process. In Cabatay’s case, while Dr. Tay, the company-designated physician, conducted the initial assessment, there was no subsequent evaluation by a mutually appointed doctor.

The Court noted that Cabatay did not initially object to Dr. Tay’s 36% disability assessment. However, he later claimed entitlement to permanent total disability benefits based on his perceived inability to return to sea service. The petitioners, Marlow Navigation, proposed referring Cabatay’s condition to a mutually appointed doctor, but he refused this proposal. The Supreme Court considered this refusal significant, stating that it undermined Cabatay’s claim for full disability benefits.

The Court clarified the application of the 120-day rule, which is often invoked in seafarer disability cases. The 120-day period, extendable to 240 days, represents the duration during which a seafarer is considered to be under temporary total disability while undergoing treatment. During this time, the seafarer receives his basic wage. However, the Court emphasized that the mere passage of 120 days does not automatically translate to permanent total disability. The employer retains the right to declare a permanent partial or total disability within this period, based on medical findings.

For the duration of the treatment but in no case to exceed 120 days, the seaman is on temporary total disability as he is totally unable to work… If the 120 days initial period is exceeded and no such declaration is made because the seafarer requires further medical attention, then the temporary total disability period may be extended up to a maximum of 240 days, subject to the right of the employer to declare within this period that a permanent partial or total disability already exists.

The Court distinguished between temporary total disability and permanent total disability, noting that the latter requires a determination that the seafarer is permanently unable to resume his sea duties. This determination typically relies on medical assessments, particularly those conducted by the company-designated physician or a mutually appointed doctor, as stipulated in the POEA-SEC and the CBA.

In Cabatay’s case, Dr. Tay provided a 36% disability assessment, indicating a partial disability rather than a permanent total one. Since Cabatay did not challenge this assessment or avail himself of the opportunity to be examined by a mutually appointed doctor, the Supreme Court upheld the NLRC’s decision to award him disability compensation based on Dr. Tay’s findings. The Court emphasized that seafarers cannot unilaterally claim full disability benefits while disregarding the established medical assessment procedures outlined in their employment contracts.

The Supreme Court’s decision underscores the importance of adhering to the contractual and regulatory frameworks governing seafarer employment. It clarifies that while seafarers are entitled to disability benefits when injured on the job, the determination of the extent of those benefits must be based on objective medical assessments and established procedures. The case serves as a reminder that seafarers have a responsibility to participate in the medical assessment process and to challenge unfavorable findings through proper channels, such as seeking a second opinion from a mutually appointed doctor.

This ruling also highlights the significance of CBAs in defining the rights and obligations of seafarers and employers. The TCC-FA in Cabatay’s case provided a mechanism for resolving disputes regarding disability assessments, and the Supreme Court emphasized the importance of following this mechanism to ensure a fair and impartial determination of disability benefits.

Furthermore, the case clarifies the limited applicability of the 120-day rule. While the rule provides a framework for temporary disability benefits, it does not automatically convert a temporary disability into a permanent one. The determination of permanent disability requires a more thorough assessment of the seafarer’s medical condition and ability to return to work.

In conclusion, the Supreme Court’s decision in Marlow Navigation Phils., Inc. v. Cabatay provides valuable guidance on the proper determination of disability benefits for seafarers. It emphasizes the importance of medical assessments, contractual provisions, and established procedures in resolving disputes over disability claims. The case serves as a reminder that seafarers and employers must adhere to these frameworks to ensure a fair and equitable resolution of disability claims.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer was entitled to permanent total disability benefits based on his own assessment of his inability to work, despite a company-designated physician’s assessment of partial disability and the seafarer’s refusal to undergo examination by a mutually appointed doctor.
What is the significance of the company-designated physician?	Under the POEA-SEC, the company-designated physician plays a crucial role in assessing a seafarer’s fitness to work or the degree of disability after repatriation for medical reasons. Their assessment is the primary basis for determining disability benefits.
What is the 120-day rule in seafarer disability cases?	The 120-day rule refers to the period during which a seafarer is considered to be under temporary total disability while undergoing treatment, extendable to 240 days if further medical attention is needed. However, it does not automatically translate to permanent total disability.
What is the role of a mutually appointed doctor?	Some CBAs, like the TCC-FA, stipulate that disability assessments should be conducted by a doctor mutually appointed by the employer and the seafarer’s union. This ensures impartiality and fairness in the assessment process.
What happens if a seafarer refuses to be examined by a mutually appointed doctor?	The Supreme Court suggested that a seafarer’s refusal to be examined by a mutually appointed doctor could undermine their claim for full disability benefits, especially if they are disputing the company-designated physician’s assessment.
What is the difference between temporary and permanent total disability?	Temporary total disability refers to the period when a seafarer is undergoing treatment and is unable to work, while permanent total disability refers to a condition where the seafarer is permanently unable to resume his sea duties.
What documents govern seafarer employment and disability benefits?	Seafarer employment and disability benefits are primarily governed by the POEA-SEC and any applicable Collective Bargaining Agreement (CBA), which serve as the “law between the parties.”
Can a seafarer claim full disability benefits based solely on their own assessment?	No, the Supreme Court clarified that seafarers cannot claim full disability benefits merely based on their own assessment of their inability to work. Objective medical assessments and established procedures must be followed.

The Marlow Navigation v. Cabatay case clarifies the process for determining disability benefits for seafarers in the Philippines. This ruling emphasizes the importance of adhering to medical assessments and contractual agreements, ensuring a fair resolution for both seafarers and employers. By understanding these guidelines, seafarers can navigate their rights more effectively, while employers can ensure compliance with legal requirements.

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: MARLOW NAVIGATION PHILS., INC. VS. WILFREDO L. CABATAY, G.R. No. 212878, February 01, 2016