In Jebsens Maritime, Inc. v. Rapiz, the Supreme Court clarified the application of the POEA-SEC concerning disability benefits for seafarers. The Court emphasized that while a seafarer’s inability to work for more than 120 days can be a factor, the final disability assessment by the company-designated physician within the prescribed period is the primary basis for determining the extent of benefits. This ruling underscores the importance of timely and accurate medical assessments in resolving disability claims in the maritime industry, impacting the compensation and rights of Filipino seafarers.

Navigating the Seas of Compensation: When a Seafarer’s Injury Meets Contractual Obligations

This case revolves around Florvin G. Rapiz, a buffet cook who suffered a wrist injury while working on board the M/V Mercury. Employed by Jebsens Maritime, Inc. and Sea Chefs Ltd., Rapiz sought permanent and total disability benefits after being medically repatriated. The central legal question is whether Rapiz is entitled to such benefits despite a company-designated physician’s assessment of only a partial disability. This dispute highlights the interplay between a seafarer’s health, contractual obligations under the POEA-SEC, and the employer’s responsibility to provide adequate compensation for work-related injuries.

The facts of the case reveal that Rapiz experienced severe pain and swelling in his right wrist while lifting heavy meat. After consulting with the ship doctor, he was diagnosed with severe “Tendovaginitis DeQuevain” and subsequently repatriated to the Philippines. Upon repatriation, he underwent treatment with the company-designated physician, who, after a period of treatment, issued a final assessment classifying his condition as a Grade 11 disability, referring to “Flexor Carpi Radialis Tendinitis, Right; Sprain, Right thumb; Extensor Carpi Ulnaris Tendinitis, Right.” Dissatisfied with this assessment, Rapiz sought a second opinion from an independent physician who classified his condition as a Grade 10 disability. The disagreement over the disability grading led Rapiz to file a Notice to Arbitrate before the National Conciliation and Mediation Board (NCMB), eventually escalating to a Voluntary Arbitrator (VA).

Before the VA, Rapiz argued that despite the disability ratings, he was entitled to permanent and total disability benefits because he was unable to work as a cook for more than 120 days following his repatriation. Jebsens Maritime countered that Rapiz was only entitled to Grade 11 disability benefits, as determined by the company-designated physician. The VA ruled in favor of Rapiz, awarding him permanent and total disability benefits. This decision was affirmed by the Court of Appeals (CA), leading Jebsens Maritime to elevate the case to the Supreme Court.

The Supreme Court, however, disagreed with the VA and the CA. The Court cited Ace Navigation Company v. Garcia, emphasizing that the company-designated physician has up to 240 days from repatriation to assess the seafarer’s condition. The Court underscored that a temporary total disability only becomes permanent when declared by the company physician within these periods, or upon the expiration of the 240-day medical treatment period without a declaration of fitness to work or permanent disability.

As these provisions operate, the seafarer, upon sign-off from his vessel, must report to the company-designated physician within three (3) days from arrival for diagnosis and treatment. 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. He receives his basic wage during this period until he is declared fit to work or his temporary disability is acknowledged by the company to be permanent, either partially or totally, as his condition is defined under the POEA-Standard Employment Contract [(SEC)] and by applicable Philippine laws. 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 seaman may of course also be declared fit to work at any time such declaration is justified by his medical condition.

In this case, the company-designated physician issued a final assessment within 102 days of Rapiz’s repatriation, classifying his disability as Grade 11. The Supreme Court found this timely assessment crucial. The Court also cited Elburg Shipmanagement Phils., Inc. v. Quiogue, Jr., clarifying that the company-designated physician must perform a significant act to justify the extended 240-day period. Otherwise, the seafarer’s disability is presumed permanent and total.

The Court further emphasized that the POEA-SEC, specifically Section 20 (A) (6), governs the determination of disability benefits. This section states that the disability grading provided under Section 32 of the contract is the sole basis for determining disability, regardless of the treatment duration.

SECTION 20. COMPENSATION AND BENEFITS
A. COMPENSATION AND BENEFITS FOR INJURY OR ILLNESS
The liabilities of the employer when the seafarer suffers work-related injury or illness during the term of his contract are as follows:
6. 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. Computation of his benefits arising from an illness or disease shall be governed by the rates and the rules of compensation applicable at the time the illness or disease was contracted.
The disability shall be based solely on the disability gradings provided under Section 32 of this Contract, and shall not be measured or determined by the number of days a seafarer is under treatment or the number of days in which sickness allowance is paid.

Acknowledging the discrepancy between the Grade 11 rating by the company-designated physician and the Grade 10 rating by the independent physician, the Court favored the former’s assessment. It reasoned that the company-designated physician had a more comprehensive understanding of Rapiz’s condition due to the extended period of treatment and diagnosis.

The decision in Jebsens Maritime, Inc. v. Rapiz clarifies the process for determining disability benefits for seafarers under the POEA-SEC. It emphasizes the importance of the company-designated physician’s timely assessment and the contractual grading system in determining the appropriate compensation. While the case acknowledges the seafarer’s right to compensation for work-related injuries, it also underscores the need for adhering to the established procedures and contractual terms in assessing and awarding disability benefits.

FAQs

What was the key issue in this case?	The key issue was whether the seafarer, Florvin G. Rapiz, was entitled to permanent and total disability benefits despite the company-designated physician’s assessment of only a partial disability. The Court had to determine the correct application of the POEA-SEC in assessing disability claims.
What is the significance of the company-designated physician’s assessment?	The assessment of the company-designated physician is crucial because it serves as the primary basis for determining the extent of disability and the corresponding benefits due to the seafarer under the POEA-SEC. The assessment needs to be timely.
How long does the company-designated physician have to make an assessment?	The company-designated physician generally has 120 days from the seafarer’s repatriation to make a final assessment. This period can be extended to a maximum of 240 days if further medical treatment is required, and justification for the extension is provided.
What happens if the company-designated physician fails to make an assessment within the prescribed period?	If the company-designated physician fails to provide an assessment within the 120-day period (or the extended 240-day period, if justified), the seafarer’s disability may be deemed permanent and total, regardless of the actual degree of impairment.
What is the role of the POEA-SEC in determining disability benefits?	The POEA-SEC serves as the governing contract between the seafarer and the employer. Section 32 of the POEA-SEC provides a disability grading system that determines the amount of compensation based on the type and severity of the disability.
What is the difference between permanent total disability and permanent partial disability?	Permanent total disability refers to a condition where the seafarer is unable to return to his regular work as a seafarer, often compensated with a lump sum. Permanent partial disability, on the other hand, refers to a condition where the seafarer has some degree of impairment but can still perform some work, compensated according to the disability grading.
Can a seafarer seek a second opinion from an independent physician?	Yes, a seafarer has the right to seek a second opinion from an independent physician. However, in case of conflicting assessments, the assessment of the company-designated physician generally prevails if it is based on a more thorough and prolonged period of medical evaluation.
What benefits was Rapiz ultimately entitled to in this case?	The Supreme Court ruled that Rapiz was entitled to permanent and partial disability benefits corresponding to a Grade 11 disability under the 2010 POEA-SEC, amounting to US$7,465.00, plus legal interest.

The Jebsens Maritime, Inc. v. Rapiz case provides a valuable lesson on the significance of adhering to the POEA-SEC guidelines in assessing disability claims of seafarers. It highlights the importance of timely medical assessments and the contractual grading system in determining the appropriate compensation. This ruling ensures that seafarers receive just compensation for work-related injuries while providing a framework for employers to fulfill their obligations within the bounds of established maritime 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: Jebsens Maritime, Inc. v. Rapiz, G.R. No. 218871, January 11, 2017