Abandonment of Medical Treatment Impact on Seafarer Disability Claims

In a significant ruling for Filipino seafarers, the Supreme Court addressed the consequences when a company-designated physician fails to issue a timely and definitive disability assessment. The case of C.F. Sharp Crew Management, Inc. v. Daganato (G.R. No. 243399, July 6, 2022) clarifies that such failure can result in the seafarer being deemed totally and permanently disabled, entitling them to full benefits under the applicable Collective Bargaining Agreement (CBA).

The Facts of the Case

Roberto Daganato was deployed as Chief Cook on board MV Vancouver Express in June 2014. He was declared fit to work after his pre-employment medical examination. In December 2014, while carrying a heavy provision of food, he slipped and fell, causing pain in his lower back. His condition worsened, leading to his medical repatriation on January 10, 2015.

Medical tests revealed disc bulges and spondylosis. Despite undergoing spinal surgery and physiotherapy, Daganato's condition did not improve. His own physician declared him permanently unfit to resume sea duties. The company-designated physician, however, only issued a disability grading of "Grade 11" on June 15, 2015—the 157th day from repatriation—without indicating his capacity to return to work.

The Issue

The central question was whether Daganato was entitled to total and permanent disability benefits under the CBA, despite the company doctor's assessment of only a partial disability grade.

The Supreme Court's Ruling

The Court ruled in favor of Daganato, holding that he suffered total and permanent disability due to the company-designated physician's failure to issue a final and definitive assessment within the 120-day period required by law.

The 120-Day Rule

Under the Labor Code, as amended, and its implementing rules, temporary total disability lasting continuously for more than 120 days is deemed total and permanent. The POEA-SEC similarly requires the company-designated physician to assess the seafarer's disability within 120 days from repatriation.

The Court reiterated the rules established in Elburg Shipmanagement, Inc. v. Quiogue, Jr.: the company-designated physician must issue a final medical assessment within 120 days from the seafarer's repatriation. If no assessment is given within this period without justifiable reason, the disability becomes permanent and total. The period may be extended to 240 days only with sufficient justification, and the employer bears the burden of proving the need for extension.

Application to the Case

Since the company-designated physician issued the Grade 11 rating only on the 157th day—without any justification for the delay or indication of Daganato's capacity to work—his disability was deemed total and permanent. The Court noted that the medical certificate from Daganato's physician, which detailed the nature of his disability and extent of incapacity, prevailed over the company doctor's belated assessment.

CBA Over POEA-SEC

The Court applied the CBA provisions over the POEA-SEC because the CBA provided better benefits to the seafarer. Clause 25.1 of the ITF CBA compensates permanent disability caused by accidents on board the vessel. However, the Court adjusted the award from USD 121,176.00 (Junior Officer rate) to USD 95,949.00 (Ratings rate), since Daganato's position as Chief Cook fell under "Ratings" classification.

Practical Takeaways

• Timely assessments matter: Company-designated physicians must issue a final disability assessment within 120 days from repatriation, extendable to 240 days only with valid justification.
• Employers bear the burden: If the assessment is delayed without sufficient reason, the seafarer's disability is automatically deemed total and permanent.
• CBAs may provide better benefits: When a CBA offers more favorable terms than the POEA-SEC, the CBA provisions prevail.
• Documentation is crucial: Seafarers should keep records of all medical consultations, treatments, and correspondence with employers regarding their condition.
• Third-doctor mechanism: If there is disagreement on disability assessment, the CBA's mechanism for a third doctor should be invoked promptly.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.