The Supreme Court held that a seafarer is entitled to permanent total disability benefits when the company-designated physician fails to issue a final and valid medical assessment within the mandatory period. This ruling reinforces the protection of seafarers’ rights, ensuring they receive just compensation for work-related injuries when medical evaluations are delayed or incomplete. The decision emphasizes the importance of strict compliance with timelines and definitive medical findings in assessing seafarers’ disabilities.

When Medical Timelines Drift: Can Seafarers Claim Full Disability?

Almario M. Centeno, a mess person working on board M/V “DIMI” POS TOPAS, suffered injuries after falling from a ladder. Upon repatriation, he underwent medical examinations, but the company-designated physicians issued their final assessment beyond the 120-day period mandated by the 2010 Philippine Overseas Employment Administration-Standard Employment Contract (2010 POEA-SEC). This delay raised the central legal question: Can Almario claim permanent total disability benefits due to the untimely medical assessment?

The case hinged on the interpretation and application of Section 20 (A) of the 2010 POEA-SEC, which governs compensation and benefits for work-related injuries or illnesses suffered by seafarers. This section requires the employer to provide medical attention and sickness allowance until the seafarer is declared fit to work or the degree of disability has been assessed. A critical aspect of this provision is the timeline for the company-designated physician to issue a final medical assessment. The Supreme Court has consistently emphasized the importance of adhering to these timelines, as highlighted in Elburg Shipmanagement Phil., Inc. v. Quioge, Jr.:

1. The company-designated physician must issue a final medical assessment on the seafarer’s disability grading within a period of 120 days from the time the seafarer reported to him;
2. If the company-designated physician fails to give his assessment within the period of 120 days, without any justifiable reason, then the seafarer’s disability becomes permanent and total;
3. If the company-designated physician fails to give his assessment within the period of 120 days with a sufficient justification (e.g., seafarer required further medical treatment or seafarer was uncooperative), then the period of diagnosis and treatment shall be extended to 240 days. The employer has the burden to prove that the company-designated physician has sufficient justification to extend the period; and
4. If the company-designated physician still fails to give his assessment within the extended period of 240 days, then the seafarer’s disability becomes permanent and total, regardless of any justification.

In Almario’s case, the 10th and Final Report was issued eight days beyond the prescribed 120-day period, without any justifiable reason for the delay. This failure to comply with the mandatory timeline was a significant factor in the Court’s decision. Moreover, the Court found that the 10th and Final Report was not a final and valid medical assessment. It did not categorically state whether Almario was fit to work and contained advice suggesting his back pain was not fully resolved.

The Court also scrutinized the Certificate of Fitness for Work signed by Almario, noting that it was not conclusive on his state of health. As a seafarer without medical expertise, Almario’s assessment could not substitute for a definitive medical evaluation by the company-designated physician. The Court emphasized that Dr. Hao-Quan’s signature on the certificate was merely as a witness, not as a medical professional attesting to Almario’s fitness. Building on this, the court also cited Article 198 (c) (1) of the Labor Code to buttress its position:

Article 198. Permanent Total Disability. x x x

x x x x

(c) The following disabilities shall be deemed total and permanent:

(1) Temporary total disability lasting continuously for more than one hundred twenty days, except as otherwise provided for in the Rules;

Because of these factors, the Supreme Court affirmed the CA’s decision to award Almario permanent total disability benefits. The Court also upheld the applicability of the Collective Bargaining Agreement (CBA), which provided for a higher amount of disability benefits. The Court found that Skanfil was represented by Bremer Bereederungsgesellschaft mbH & Co. KG in the CBA, and the use of the latter’s header by the captain of M/V POS TOPAS supported this finding. However, the Court deleted the awards for moral and exemplary damages, finding insufficient evidence of bad faith on Skanfil’s part. The Court retained the award of attorney’s fees, citing Article 2208 (8) of the Civil Code, and imposed a legal interest of 6% per annum on the total monetary awards until complete payment, following Nacar v. Gallery Frames.

FAQs

What was the key issue in this case?	The key issue was whether Almario was entitled to permanent total disability benefits due to the company-designated physicians’ failure to issue a timely and valid medical assessment.
What is the prescribed period for the company-designated physician to issue a final medical assessment?	The company-designated physician must issue a final medical assessment within 120 days from the seafarer’s repatriation. This period may be extended to 240 days with sufficient justification.
What happens if the company-designated physician fails to issue a timely assessment?	If the company-designated physician fails to issue an assessment within the prescribed period without justifiable reason, the seafarer’s disability becomes permanent and total.
What constitutes a valid medical assessment?	A valid medical assessment must be final, conclusive, and definite, clearly stating whether the seafarer is fit to work, the exact disability rating, or whether the illness is work-related, without any further condition or treatment.
Is a Certificate of Fitness for Work signed by the seafarer conclusive evidence of their fitness?	No, a Certificate of Fitness for Work signed by the seafarer is not conclusive. It must be supported by a valid medical assessment from the company-designated physician.
When is a seafarer required to seek a third doctor’s opinion?	A seafarer is required to seek a third doctor’s opinion only when there is a disagreement between the findings of the company-designated physician and the seafarer’s chosen physician, and both findings are valid.
Are moral and exemplary damages always awarded in disability claims?	No, moral and exemplary damages are not always awarded. They are granted only when the employer’s actions are attended by bad faith, fraud, or oppressive labor practices.
What is the legal basis for awarding attorney’s fees in disability claims?	Attorney’s fees may be awarded under Article 2208 (8) of the Civil Code, which allows for recovery in actions for indemnity under workmen’s compensation and employer’s liability laws.

This case underscores the critical importance of timely and definitive medical assessments in seafarers’ disability claims. It serves as a reminder to employers and company-designated physicians to adhere strictly to the timelines and requirements set forth in the 2010 POEA-SEC, ensuring that seafarers receive the protection and compensation they are entitled to under the law.

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: SKANFIL MARITIME SERVICES, INC. vs. ALMARIO M. CENTENO, G.R. No. 227655, April 27, 2022