Professional Documents
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SSCR-CoL
Notes on
OFW Seafarers'
Sickness, Disability , & Death Benefits
Justice Brion has a helpful summary of the legal regime on seafarers' compensation
claims (Vergara v. Hammonia Maritime Services, Inc. G.R. NO. 172933 , 06 October 2008).
Besides the benefits provided under the State Insurance Fund (SSS/ECC), the law
through the POEA under its rule-making power further provides the following benefits to
the overseas seafarers:
a) medical treatment to the seafarer until declared fit or the degree of disability is
established;
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c) permanent total or partial disability benefits;
d) death benefits
The liabilities of the employer when the seafarer suffers work-related injury or
illness during the term of his contract are as follows:
1 . The employer shall continue to pay the seafarer his wages during the time
he is on board the ship;
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seafarer to comply with the mandatory reporting requirement shall result in his
forfeiture of the right to claim the above benefits.
If a doctor appointed by the seafarer disagrees with the assessment, a
third doctor may be agreed jointly between the employer and the seafarer. The
third doctor's decision shall be final and binding on both parties.
5. In case a seafarer is disembarked from the ship for medical reasons, the
employer shall bear the full cost of repatriation in the event the seafarer is
declared (1) fit for repatriation; or (2) fit to work but the employer is unable to find
employment for the seafarer on board his former ship or another ship of the
employer.
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 his 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.
1. In case of work-related death of the seafarer, during the term of his contract,
the employer shall pay his beneficiaries the Philippine currency equivalent to the
amount of Fifty Thousand US dollars (US$50,000) and an additional amount of
Seven Thousand US dollars (US$7,000) to each child under the age of twenty one
(21) but not exceeding four (4) children, at the exchange rate prevailing during
the time of payment.
2. Where death is caused by warlike activity while sailing within a declared war
zone or war risk area, the compensation payable shall be doubled. The employer
shall undertake appropriate war zone insurance coverage for this purpose.
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4. The other liabilities of the employer when the seafarer dies as a result of
work related injury or illness during the term of employment are as follows:
a. The employer shall pay the deceased's beneficiary all outstanding obligations
due the seafarer under this Contract
b. The employer shall transport the remains and personal effects of the
seafarer to the Philippines at employer's expense except if the death occurred in a
port where local government laws or regulations do not permit the transport of such
remains. In case death occurs at sea, the disposition of the remains shall be
handled or dealt with in accordance with the master's best judgment. In all cases,
the employer/master shall communicate with the manning agency to advise for
disposition of seafarer's remains.
c. The employer shall pay the beneficiaries of the seafarer the Philippine currency
equivalent to the amount of One Thousand US dollars (US$1,000) for burial
expenses at the exchange rate prevailing during the time of payment.
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member or a requested individual. The employer shall pay for the
transportation cost of the family member or requested individual to the major
airport closest to the place of hospitalization of the seafarer. It is, however, the
responsibility of the family member or requested individual to meet all visa and travel
document requirements;
J. The seafarer or his successor in interest acknowledges that payment for injury,
illness, incapacity, disability or death and other benefits of the seafarer under this
contract and under RA 8042, as amended by RA 10022, shall cover all claims in
relation with or in the course of the seafarer's employment, including but not
limited to damages arising from the contract, tort, fault or negligence under the
laws of the Philippines or any other country.
It has been held that the power of the POEA in requiring the standard model contract is
a valid delegation of legislative power as there is a sufficient standard guiding the
delegate in the exercise of the said authority. The Supreme Court said that the
standard was discoverable in the executive order itself which, in creating the POEA,
mandated it to protect the rights of overseas Filipino workers to "fair and equitable
employment practices" (Eastern Shipping Lines vs. POEA, G.R. No. 76633 , 18 October 1988).
It must be stressed these claims are demandable from the employer and if refused,
must be filed with the Labor Arbiter (Sec. 10, Migrant Workers Act)
These three (3) kinds of benefits [ medical expenses, sickness allowance, disability
benefits] have been held distinct and different from each other. Thus, the medical
expenses spent for the seafarers treatment and the sick wages cannot be deducted
from the disability benefits that the seafarer was eventually found entitled to receive
(Javier vs Philippine Transmarine Carriers,, , GR No. 204101, 02 July 2014).
In the case of work-related injury or illness, the employer is liable for the full wage,
while the seafarer is still on board, and the cost of medical treatment in foreign ports.
When the seafarer need to be repatriated from the ship and receive further medical
treatment on land, the employer has to bear the cost of repatriation and treatment, and
the seafarer is entitled to an additional sickness allowance.
The amount of sickness allowance is the basic wage of the seafarer, covers the days
counting from the day he signed off from the ship until the time he is declared fit to work
or disability grading, provided in section 32 (Schedule of Disability or Impediment for
Injuries Suffered and Diseases Including Occupational Diseases or Illness Contracted),
assessed by the company-designated physician. This sickness allowance period
should not exceed 120 days [ 4 months] and not less than a month. During this
period the seafarer is deemed as having “temporary total disability”.
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That the seafarer's sickness is later medically declared as not work-related does not
prejudice his right to receive sickness allowance, considering that he got ill while on
board the ship and was repatriated for medical treatment before the end of his 10-month
employment contract. (Transocean Ship Management (Phils.), Inc., Carlos S. Salinas, and
General Marine services Corporation vs. Inocencio Vedad/ Inocencio Vedad vs. Trancencio
Ship Management (Phils.), Inc., Carlos S. Salinas, and G.R. Nos. 194490-91/ G.R. Nos.
194518 & 19452420 March 2013)
For disability to be compensable under Section 20(A) of the Amended Standard Terms
and Conditions Governing the Overseas Employment of Filipino Seafarers on-Board
Ocean-Going Ships issued on October 26, 2010 (2010 POEA-SEC),two (2) elements
must concur:
Thus, in situations where the seafarer seeks to claim the compensation and benefits
that Section 20(A) of the POEA-SEC grants to him, the law requires the seafarer to
prove that:
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compensable.( Malicdem vs. Asia Bulk Transport Phils., Inc., Inter-Ocean Company
Limited, G.R. No. 224753, 19 June 2019)
The illness leading to the eventual death of seafarer must be proven to have
been contracted during the term of the contract.. An injury or accident is said to
arise "in the course of employment" when it takes place within the period of
employment, at a place where the employee reasonably may be, and while he is
fulfilling his duties or is engaged in doing something incidental thereto. ( CF Sharp Crew
Management vs Heirs of Repiso, GR No. 190534, Feb 10, 2016)
It is not required that the employment be the sole factor in the growth, development or
acceleration of the illness to entitle the claimant to the benefits provided therefor. It is
enough that the employment had contributed, even in a small degree, to the
development of the disease and in bringing about his death (ibid.)
The phrase "work-related death of the seafarer, during the term of his employment
contract" under Part A (1) of the said provision should not be strictly and literally
construed to mean that the seafarer's work-related death should have precisely
occurred during the term of his employment. Rather, it is enough that the
seafarer's work-related injury or illness which eventually causes his death should
have occurred during the term of his employment (ibid.).
Even assuming that the ailment of the worker was contracted prior to his employment,
this still would not deprive him of compensation benefits. For what matters is that his
work had contributed, even in a small degree, to the development of the disease
and in bringing about his eventual death. Neither is it necessary, in order to recover
compensation, that the employee must have been in perfect health at the time he
contracted the disease. A worker brings with him possible infirmities in the course of his
employment, and while the employer is not the insurer of the health of the employees,
he takes them as he finds them and assumes the risk of liability. If the disease is the
proximate cause of the employee's death for which compensation is sought, the
previous physical condition of the employee is unimportant, and recovery may be
had for said death, independently of any pre-existing disease (ibid).
Settled is the rule that for an illness to be compensable, it is not necessary that
the nature of the employment be the sole and only reason for the illness suffered
by the seafarer. It is sufficient that there is a reasonable linkage between the disease
suffered by the employee and his work to lead a rational mind to conclude that his work
may have contributed to the establishment or, at the very least, aggravation of any pre-
existing condition he might have had. (Jebsen Maritime Inc., vs. Timoteo Gavina, G.R. No.
199052, 26 June 2019). If the illness which caused the employee's death was either
contracted in the course of his employment or aggravated during the same
period, the clear causal connection between such illness and the employee's
eventual death already legally exists, making the death compensable regardless
of when such subsequent death occurred. It is not even required that the illness
contracted during the course of employment be the exact same illness that caused the
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eventual death, for as long as it can be established that the work-related ailment he
contracted during the course of his employment be that which triggered the deterioration
of his body's resistance against the said illness, any related condition, or any other
affliction that he may have subsequently had (German Marine Agencies et al vs Caro, . GR
No. 200774, 13 February 2019).
A seafarer may pursue an action for total and permanent disability benefits in any
of the following conditions:
(b) 240 days had lapsed without any certification being issued by the company-
designated physician;
(c) the company-designated physician declared that he is fit for sea duty within the 120-
day or 240-day period, as the case may be, but his physician of choice and the doctor
chosen under Section 20-8(3) of the POEA-SEC are of a contrary opinion;
(f) the company-designated physician determined that his medical condition is not
compensable or work-related under the POEA-SEC but his doctor-of-choice and the
third doctor selected under Section 20-B(3) of the POEA-SEC found otherwise and
declared him unfit to work;
(g) the company-designated physician declared him totally and permanently disabled
but the employer refuses to pay him the corresponding benefits; and (h) the company-
designated physician declared him partially and permanently disabled within the 120-
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day or 240-day period but he remains incapacitated to perform his usual sea duties after
the lapse of the said periods. (Edgar L. Torillos vs. Eastgate Maritime Corporation, et al.,
G.R. No. 215904, 16 January 2019)
Notes
From the website of Del Rosario & Del Rosario are these important comments:
Author's Note: Vessel interests have always argued that this labor law principle of
120 days is not applicable to seafarers' claims as seafarers' claims are based on the
POEA Standard Employment C Philippine Social Security System (SSS) which has
different rules than that of the POEA Contract. SSS pays a monthly pension of five years
provided the employee is not gainfully employed and is unable to recover from his
permanent disability. Further, said employee must be examined by a doctor at least once
a year. The POEA Standard Employment Contract provides for treatment until "maximum
cure" which may take more than 120 days and it is the company doctor that declares the
disability grading depending on a schedule of disability. In fact, Section 20(3) of the POEA
contract states that the benefits under said contract are separate and distinct from the
Social Security System.
If the seafarer fails to signify his intent to submit the disputed assessment to a third
physician, then the company can insist on the disability rati
ng issued by the company designated physician, even against a contrary opinion by the
seafarer's doctor. The duty to secure the opinion of a third doctor belongs to the
employee, who must actively or expressly request for it. Failure to comply with
the requirement of referral to a third-party physician is tantamount to violation of
the terms under the 2010 POEA-SEC, and without a binding third-party opinion,
the findings of the company-designated physician shall prevail over the
assessment made by the seafarer's doctor. Thus, without the referral to a third
doctor, there is no valid challenge to the findings of the company-designated physician.
In the absence thereof, the medical pronouncement of the company-designated
physician must be upheld.(Jan Frederick Pineda De Vera vs. United Philippine Lines, Inc.,
G.R. No. 223246, 26 June 2019).
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Pre existing condition; estoppel does not apply.
Deliberate concealment by a seafarer of a pre-existing medical condition in his
Pre Employment Medical Examination (PEME) constitutes fraudulent
misrepresentation which shall disqualify him from any disability compensation
and benefits. In one case , the seafarer did not indicate in the appropriate box in his
PEME form that he has hypertension, although he had been taking Norvasc as
maintenance medicine for two years. He only disclosed his pre-existing medical
condition after he was repatriated to the Philippines. Since PEME is mandatory before a
seafarer is able to board a ship, it goes to show that he concealed his hypertension no
less than four times as well. This circumstance negates any suggestion of good faith
that the seafarer makes in defense of his misdeed . The company was held not in
estoppel simply because the seafarer passed his PEME. A "fit to work" declaration in
the PEME is not a conclusive proof that a seafarer is free from any disease prior to
deployment (Gesmundo vs NEDA Maritime Agency G.R. No. 210955 14 August 2019).
Medical abandonment
The seafarer cannot claim disability benefits because he also committed medical
abandonment. In this case, after undergoing several tests, the seafarer was placed
under observation. The attending physician advised him to return for his medical
clearance but the seafarer did not do so. He argues that he could still feel the symptoms
of his ailment despite having been cleared by the company's cardiologist from coronary
arterial disease on October 15, 2009. Hence, he was prompted to consult another
doctor. However, while indeed a seafarer has the right to seek the opinion of other
doctors under Section 20(8)(3) of the 2000 POEA-SEC, this is on the presumption that
the company-designated physician had already issued a certification on his fitness or
disability and he finds this disagreeable.
Premature complaint
Both the company physician and the seafarers own physician recommended that the
seafarer undergo at least a bone scan to determine his current condition while
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undergoing treatment, thus indicating that his condition needed further attention. In this
regard, the company is correct in arguing that the seafarer abandoned treatment,
as under the law and the POEA contract of the parties, the company physician is
given up to 240 days to treat him. The fact that the seafarer's own doctor required the
conduct of further tests on him is an admission that his diagnosis of permanent total
disability is incomplete and inconclusive, and thus unreliable. It can only corroborate the
company-designated physician's finding that further tests and treatment are required. It
has been]previously held that a seafarer is guilty of medical abandonment for his
failure to complete his treatment before the lapse of the 240-day period, which
prevents the company physician from declaring him fit to work or assessing his
disability (Maunlad Trans, Inc.;, v.Rrodelas, jr., gr. No. 225705, 01 April 2019).
In one case, the Supreme Court affirmed the disapproval m]of the claim for
compensation because no evidence was submitted to show that the seafarer met
an accident on board the vessel that caused his injury. There was no accident
report or any medical report issued indicating that the seafarer figured in an accident
while on board. Moreover, the Medical Report issued by the attending physician in
Newcastle, England did not mention that the seafarer's injury was caused by an
accident on board but instead noted that the primary cause of the injury was: "Pain
occurred at his right leg up to his pelvis during standing for a long period of time."
Hence, Torillos' claim that he met an accident on board was based on pure allegations.
It is basic that Torillos must prove his own assertions and his failure to discharge the
burden of proving that he was covered by the CBA militates against his entitlement to
any of its benefits. (Torillos vs. Eastgate Maritime Corporation, et al., G.R. No. 215904,
January 16, 2019.
The POEA-SEC requires the employer to prove not only that the death is directly
attributable to the seafarer himself but also that the seafarer willfully caused his death
Evidence of insanity or mental sickness may be presented by the heirs of the
deceased to negate the requirement of willfulness as a matter of counter-defense.
Since the willfulness may be inferred from the physical act itself of the
seafarer(his jump into the open sea), the insanity or mental illness required to be
proven must be one that deprived him of the full control of his senses; in other
words, there must be sufficient proof to negate voluntariness.
Homesickness and/or family problems may result to depression, but the same
does not necessarily equate to mental disorder. The issue of insanity is a question
of fact; for insanity is a condition of the mind not susceptible of the usual means of
proof. As no man would know what goes on in the mind of another, the state or
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condition of a person’s mind can only be measured and judged by his behavior.
Establishing the insanity of an accused requires opinion testimony which may be given
by a witness who is intimately acquainted with the person claimed to be insane, or who
has rational basis to conclude that a person was insane based on the witness’ own
perception of the person, or who is qualified as an expert, such as a psychiatrist. No
such evidence was presented to support the claim of the seafarer's heirs..(Agile
Maritime Resources vs Siador , GR No. 191034, 01 October 2014).
CBA Benefits
The special clauses on CBA must prevail over the standard terms and benefits
formulated by the POEA-SEC. The sea fearer will always have the minimum rights as
per the POEA-SEC, but to the extent a CBA gives better benefits, these terms will
override the POEA-SEC terms. This is so because the contract of labor is so
impressed with public interest that the more beneficial conditions must be endeavored
in favor of the laborer. (MECO Manning and Crew Services vs Cuyos, GR No. 222939, 03
July 2019
The Supreme Court has affirmed the award granted by the NLRC and the CA for
payment or reimbursement of the medical expenses of the seafarer relative to the
required treatment for his cancer is proper., based on the company's voluntary offer.
that was admitted in its position paper filed at the outset before the Labor Arbiter.
Having obliged itself ] to shoulder the medical treatment , the employer must be held
answerable to said obligation with interests of 6% per annum shall be imposed on said
medical expenses and sickness allowance from finality of the decision until paid.
(Transocean Ship Management (Phils.), Inc., Carlos S. Salinas, and General Marine services
Corporation vs. Inocencio Vedad/ Inocencio Vedad vs. Trancencio Ship Management
(Phils.), Inc., Carlos S. Salinas, and G.R. Nos. 194490-91/ G.R. Nos. 194518 & 19452420
March 2013) PFFALLARJRDEC2020
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