Key Takeaway: The Supreme Court Clarifies When Seafarers Are Entitled to Total and Permanent Disability Benefits

Ranilo Bandico v. Philippine Transmarine Carriers, Inc., et al., G.R. No. 242096, February 03, 2021

Imagine a seafarer, far from home, suffering an injury that changes his life forever. The journey to recovery is fraught with medical assessments, legal battles, and the daunting question: Will I ever return to the sea? The case of Ranilo Bandico sheds light on the complexities of disability claims for seafarers and offers hope for those seeking rightful compensation.

Ranilo Bandico, an experienced Oiler, was working aboard the MV Voyager of the Seas when a slip on a metal ladder led to severe injuries. His journey from injury to a legal battle for disability benefits underscores the critical importance of understanding the Philippine Overseas Employment Administration-Standard Employment Contract (POEA-SEC) and the rights of seafarers.

Legal Context: Understanding Disability Claims Under POEA-SEC

The POEA-SEC serves as the backbone for employment contracts of Filipino seafarers, outlining their rights and benefits, including disability compensation. Under Section 20 (B) of the 2000 POEA-SEC, seafarers are entitled to disability benefits if their injury or illness is work-related and occurred during the term of their employment contract.

Disability is classified as either total or partial, with total disability entitling the seafarer to a higher compensation. The Supreme Court has established that a seafarer’s disability becomes total and permanent when declared so by the company-designated physician or upon the lapse of the 120- or 240-day treatment period without a definitive assessment.

Key provisions include:

“In case of permanent total or partial disability of the seafarer caused by either injury or illness, the seafarer shall be compensated in accordance with the schedule of benefits enumerated in Section 32 of this Contract.”

This ruling emphasizes that the true test of disability is the seafarer’s ability to earn, not just the medical significance of their condition. For instance, if a seafarer like Ranilo can no longer perform the strenuous duties required on a ship due to his injuries, he may be considered totally and permanently disabled, even if the medical assessment suggests otherwise.

The Case of Ranilo Bandico: From Injury to Legal Victory

Ranilo Bandico’s ordeal began in February 2011 when he slipped on a metal ladder aboard the MV Voyager of the Seas, resulting in a contusion on his right knee, inflammation, and severe pain in his leg and back. Despite receiving medical attention on the ship and later from offshore doctors, his condition did not improve significantly.

Upon repatriation to the Philippines, Bandico was assessed by company-designated physicians who recommended surgery for his spine. However, Bandico refused the procedure, fearing it would not guarantee full recovery. The company-designated physicians eventually issued a Final Medical Summary, declaring Bandico unfit for duty but assigning him disability gradings of 8 for his spine and 10 for his knee.

Bandico sought compensation for total and permanent disability, leading to a legal battle that traversed the Labor Arbiter, the National Labor Relations Commission (NLRC), and the Court of Appeals (CA). The CA initially affirmed the NLRC’s decision granting Bandico total and permanent disability benefits but later modified it to partial disability benefits upon reconsideration.

The Supreme Court, in its decision, emphasized the contradiction in the company-designated physicians’ assessment:

“The disability grading in the Final Medical Summary clearly contradicts the recommendation of the company-designated physicians that he was not fit for sea duty. Consequently, the Court is more inclined to disregard the disability grading given and to sustain the finding that petitioner suffered from total and permanent disability, as he is no longer fit for duty.”

The Court reinstated the NLRC’s decision, granting Bandico total and permanent disability benefits, highlighting that the lack of a conclusive medical assessment within the 120 or 240-day period led to the legal presumption of total and permanent disability.

Practical Implications: Navigating Disability Claims

This ruling sets a precedent for future cases, emphasizing that seafarers should not be penalized for refusing medical procedures that do not guarantee full recovery. It also underscores the importance of timely and conclusive medical assessments by company-designated physicians.

For seafarers and their families, understanding the nuances of the POEA-SEC and the legal framework surrounding disability claims is crucial. Employers and manning agencies must ensure that medical assessments are clear and consistent to avoid legal disputes.

Key Lessons:

• Seafarers should seek legal advice if they believe their disability assessment is inconsistent with their actual condition.
• Employers must ensure that medical assessments are timely and conclusive to avoid legal challenges.
• Refusal of medical procedures that do not guarantee full recovery should not automatically preclude a seafarer from receiving total and permanent disability benefits.

Frequently Asked Questions

What is considered a work-related injury for seafarers?

An injury is considered work-related if it occurs during the term of the seafarer’s employment contract and is directly linked to their duties aboard the vessel.

How is total and permanent disability determined?

Total and permanent disability is determined when the company-designated physician declares it so or when no definitive assessment is made within the 120- or 240-day treatment period.

Can a seafarer refuse medical treatment and still claim disability benefits?

Yes, if the refusal is based on reasonable grounds, such as the treatment not guaranteeing full recovery, the seafarer may still be entitled to disability benefits.

What should a seafarer do if they disagree with the company-designated physician’s assessment?

They can consult their own physician and, if necessary, seek a third doctor’s opinion as provided by the POEA-SEC.

How can employers ensure compliance with the POEA-SEC?

Employers should ensure timely and conclusive medical assessments and communicate clearly with seafarers about their rights and the assessment process.

ASG Law specializes in maritime law and disability claims. Contact us or email hello@asglawpartners.com to schedule a consultation.