Concealing Pre-Existing Illnesses Can Disqualify Seafarers from Benefits

PAL Maritime Corporation, Norwest Management Co. (PTE) Ltd. Singapore/ Sonrisa N. David v. Darwin D. Dalisay, G.R. No. 218115, January 27, 2021

Imagine a Filipino seafarer, eager to embark on a new voyage, but hiding a secret about his health. This scenario, all too common in the maritime industry, can lead to dire legal consequences. In the case of Darwin D. Dalisay, a seafarer who concealed his pre-existing back condition, the Supreme Court of the Philippines ruled that such deceit disqualifies one from receiving any benefits, including sickness allowance and attorney’s fees. This decision underscores the importance of transparency in the maritime sector and serves as a cautionary tale for seafarers and employers alike.

The central legal question in this case was whether a seafarer who knowingly conceals a pre-existing illness during the pre-employment medical examination (PEME) can still claim benefits under the Philippine Overseas Employment Administration Standard Employment Contract (POEA-SEC). The Court’s ruling not only clarified the legal boundaries but also highlighted the real-world implications of such actions.

Understanding the Legal Framework

The legal context of this case is rooted in the POEA-SEC, which governs the employment of Filipino seafarers. Section 20(E) of the 2010 POEA-SEC is particularly relevant, stating: “A seafarer who knowingly conceals a pre-existing illness or condition in the Pre-Employment Medical Examination (PEME) shall be liable for misrepresentation and shall be disqualified from any compensation and benefits.” This provision aims to ensure that seafarers are truthful about their health to prevent potential risks at sea.

The term “knowingly conceals” implies an intentional act of withholding information about one’s health condition. Previous cases like Manansala v. Marlow Navigation Phils., Inc. and Lerona v. Sea Power Shipping Enterprises, Inc. have established that such concealment must involve bad faith or intent to deceive. These cases set a precedent that fraudulent misrepresentation in PEME can lead to the forfeiture of benefits, emphasizing the need for honesty in employment applications.

In practical terms, this legal principle affects how seafarers and employers approach the PEME. For instance, a seafarer with a history of hypertension might be tempted to hide this condition to secure employment. However, doing so could lead to severe consequences, as illustrated in the case of Darwin Dalisay.

The Journey of Darwin Dalisay

Darwin Dalisay applied for employment with PAL Maritime Corporation in 2012. During his PEME, he declared no history of ailments other than a varicocoelectomy operation in 2003. Declared fit to work, he was hired as an able seaman and deployed aboard the M/V Ornella.

Soon after deployment, Darwin experienced sharp back pain while lifting heavy provisions. Diagnosed with low back pain secondary to disc protrusion, he was repatriated and treated. However, PAL Maritime discovered that Darwin had previously filed a claim for disability benefits against another employer for the same condition, which he had concealed during his PEME.

The procedural journey through the courts began with the Labor Arbiter dismissing Darwin’s claim for benefits due to fraudulent misrepresentation. On appeal, the National Labor Relations Commission (NLRC) reversed this decision, awarding Darwin permanent disability benefits, sickness allowance, and attorney’s fees. However, the Court of Appeals (CA) partially granted PAL Maritime’s petition, affirming the disqualification from disability benefits but retaining the awards for sickness allowance and attorney’s fees.

The Supreme Court ultimately ruled in favor of PAL Maritime, stating: “The phrase ‘disqualified from any compensation and benefits’ in Section 20(E) of the POEA-SEC is without qualifications and must be interpreted to include all kinds of benefits including sickness allowance.” Another critical quote from the decision is: “To award attorney’s fees despite the seafarer’s malicious concealment would be tantamount to rewarding his fraudulent conduct.”

The Court’s decision highlights the importance of the PEME not being an exhaustive medical examination but rather a tool to determine fitness for sea service. Darwin’s case illustrates that passing the PEME does not excuse concealment of pre-existing conditions.

Practical Implications and Key Lessons

This ruling has significant implications for Filipino seafarers and maritime employers. Seafarers must understand that concealing health conditions can lead to the loss of all benefits, not just disability compensation. Employers, on the other hand, are justified in denying claims based on such concealment, protecting them from potential liabilities.

For seafarers, the key lesson is to be transparent about their medical history during the PEME. Even if a condition seems healed, full disclosure is necessary to avoid future legal battles. Employers should maintain rigorous PEME processes and be vigilant about verifying the medical history of their seafarers.

In practice, this means seafarers should keep detailed records of their medical history and be prepared to discuss any past conditions with medical examiners. Employers should ensure their PEME protocols are clear and comprehensive, and they should have mechanisms in place to cross-check the information provided by seafarers.

Frequently Asked Questions

What is the POEA-SEC, and why is it important for seafarers?
The POEA-SEC is the standard employment contract for Filipino seafarers, outlining their rights and obligations. It’s crucial because it governs the terms of employment, including compensation and benefits.

Can a seafarer still claim benefits if they pass the PEME despite concealing a condition?
No, as per the Supreme Court’s ruling, passing the PEME does not excuse concealment. A seafarer who knowingly conceals a pre-existing illness is disqualified from any compensation and benefits.

What constitutes ‘knowingly concealing’ a pre-existing illness?
Knowingly concealing involves intentionally withholding information about a pre-existing illness or condition during the PEME, with the intent to deceive or gain employment.

Are there any exceptions to the rule of disqualification from benefits due to concealment?
The POEA-SEC does not provide exceptions. The rule is clear: any knowing concealment disqualifies a seafarer from all benefits.

What should seafarers do if they have a healed condition?
Seafarers should still disclose any healed conditions during the PEME. Transparency is key to avoiding legal issues and ensuring a smooth employment process.

How can employers protect themselves from fraudulent misrepresentation?
Employers should implement thorough PEME processes, verify medical histories, and maintain clear communication with seafarers about the importance of honesty.

ASG Law specializes in labor and employment law for the maritime industry. Contact us or email hello@asglawpartners.com to schedule a consultation and ensure your maritime employment practices are legally sound.