In Wallem Maritime Services, Inc. v. Tanawan, the Supreme Court clarified the conditions under which a seafarer is entitled to disability benefits, emphasizing the importance of reporting injuries during employment and adhering to medical evaluation protocols. The Court ruled that while the company-designated physician’s assessment is primary, it is not conclusive. Seafarers who are unable to work for over 120 days due to an injury sustained during their contract are entitled to disability benefits, irrespective of the physician’s final assessment. Moreover, the Court underscored the seafarer’s responsibility to report any injuries or illnesses sustained during the term of their contract within a specific timeframe to ensure eligibility for disability benefits, balancing the seafarer’s rights with the employer’s need for timely and accurate information.

Foot Injury vs. Eye Injury: When Can a Seafarer Claim Disability Benefits?

The case of Wallem Maritime Services, Inc. v. Ernesto C. Tanawan revolved around a seafarer’s claim for disability benefits following injuries sustained during his employment. Tanawan, employed as a dozer driver, suffered a foot injury on board the vessel and later claimed an eye injury allegedly sustained during the same period. The central legal question was whether Tanawan was entitled to disability benefits for both injuries, considering the findings of the company-designated physician regarding his fitness to work and his compliance with reporting requirements under the POEA Standard Employment Contract (SEC).

The Supreme Court, in resolving this issue, turned to the established principles governing the employment of seafarers. According to the Court, the POEA SEC is integral to the employment contract, possessing the force of law between the parties, provided its stipulations are not contrary to law, morals, public order, or public policy. The Court highlighted Section 20(B) of the 1996 POEA SEC, which details the compensation and benefits for injury or illness suffered by a seafarer during the term of their contract. This section stipulates the employer’s liabilities, including the payment of wages, medical treatment, and sickness allowance, until the seafarer is declared fit to work or the degree of disability is established by the company-designated physician.

A critical aspect of Section 20(B) is the requirement for the seafarer to submit to a post-employment medical examination by a company-designated physician within three working days upon their return. The provision states:

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.

Building on this provision, the Court emphasized that the company-designated physician plays a crucial role in determining the seafarer’s disability or fitness to work. However, this assessment is not absolute. The seafarer has the right to seek a second opinion from a physician of their choice, and the labor tribunals and courts will evaluate the medical reports based on their inherent merit. This approach ensures a balanced consideration of medical evidence, protecting the seafarer’s rights while acknowledging the employer’s reliance on the company-designated physician’s expertise.

Applying these principles to Tanawan’s case, the Court distinguished between the foot injury and the alleged eye injury. Regarding the foot injury, Tanawan complied with the requirement of undergoing a medical examination by the company-designated physician, Dr. Lim, within the prescribed period. Although Dr. Lim eventually declared Tanawan fit to work, the Court noted that Tanawan was unable to perform his job for 172 days, exceeding the 120-day threshold that indicates a permanent disability. The Supreme Court referred to the case of Palisoc v. Easways Marine Inc., stating that:

Under the law, there is permanent disability if a worker is unable to perform his job for more than 120 days, regardless of whether or not he loses the use of any part of his body.

The Court further clarified that disability should be understood in terms of loss of earning capacity rather than solely on the medical significance of the disability, citing Remigio v. National Labor Relations Commission. Therefore, despite the company-designated physician’s assessment, Tanawan’s inability to work for more than 120 days entitled him to disability benefits for the foot injury.

In contrast, the claim for disability benefits due to the eye injury was denied. The Court emphasized Tanawan’s failure to report the eye injury and undergo an examination by a company-designated physician within three days of his repatriation. The Supreme Court also explained the purpose of the rule which aims to allow the physician to easily determine the cause of the illness or injury. It cited the case of Jebsens Maritime, Inc. v. Undag:

The rationale for the rule is that reporting the illness or injury within three days from repatriation fairly makes it easier for a physician to determine the cause of the illness or injury. Ascertaining the real cause of the illness or injury beyond the period may prove difficult.

The Court also noted the significance of establishing that the injury or illness was sustained during the term of the contract. In this case, Tanawan failed to present sufficient evidence linking the alleged splashing of thinner to his subsequent retinal detachment and vitreous hemorrhage. The certification by Dr. Bunuan did not provide information on the possible cause of the eye injury.

The Court differentiated the facts of the case from Remigio v. National Labor Relations Commission wherein the phrase “during the term” found in Section 20(B) covered all injuries or illnesses occurring during the lifetime of the contract. In this case, the court ruled that whoever claims entitlement to the benefits provided by law should establish his right to the benefits by substantial evidence by presenting concrete proof showing that he acquired or contracted the injury or illness that resulted to his disability during the term of his employment contract.

Consequently, the Supreme Court partially granted the petition, deleting the award of disability benefits for the eye injury. The decision underscores the importance of adhering to the procedural requirements outlined in the POEA SEC while ensuring that seafarers receive just compensation for disabilities sustained during their employment.

FAQs

What was the key issue in this case?	The key issue was whether a seafarer was entitled to disability benefits for foot and eye injuries, considering the company-designated physician’s assessment and compliance with reporting requirements under the POEA SEC.
What is the role of the company-designated physician?	The company-designated physician is responsible for assessing the seafarer’s disability or fitness to work, but their assessment is not final and can be challenged by the seafarer.
What is the significance of the 120-day rule?	If a seafarer is unable to work for more than 120 days due to an injury sustained during employment, they are considered permanently disabled and entitled to disability benefits, regardless of the company-designated physician’s assessment.
What is the reporting requirement for injuries?	Seafarers must report any injuries or illnesses to the company-designated physician within three working days of repatriation to be eligible for disability benefits.
What evidence is needed to claim disability benefits?	Seafarers must provide substantial evidence that the injury or illness was sustained during the term of their employment contract.
Can a seafarer seek a second medical opinion?	Yes, a seafarer can seek a second opinion from a physician of their choice, and the medical reports will be evaluated based on their merit.
What happens if a seafarer fails to report an injury promptly?	Failure to report an injury within the prescribed timeframe may result in the forfeiture of the right to claim disability benefits for that specific injury.
How is disability defined in this context?	Disability is defined in terms of loss of earning capacity rather than solely on the medical significance of the injury, meaning the inability to perform one’s job.

The Supreme Court’s decision in Wallem Maritime Services, Inc. v. Tanawan serves as a crucial guide for seafarers and employers alike, clarifying the requirements and procedures for claiming disability benefits. By understanding these guidelines, both parties can ensure that claims are processed fairly and efficiently, protecting the rights and interests of all stakeholders. It is important that these claims are addressed promptly as mandated by 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: Wallem Maritime Services, Inc. v. Ernesto C. Tanawan, G.R. No. 160444, August 29, 2012