Seafarers' Disability Claims: The Duty to Inform and the 120/240-Day Rule

The Supreme Court has long protected the rights of Filipino seafarers, who risk their health and safety at sea. A recurring legal question involves disability claims: when does a seafarer's injury become "total and permanent," entitling them to full benefits? In Gere v. Anglo-Eastern Crew Management Phils., Inc. (G.R. No. 226656, April 23, 2018), the Court settled an important aspect of this question: the company-designated physician must not only issue a medical assessment, but must also actually inform the seafarer of it. Failure to do so has serious consequences for the employer.

The Facts of the Case

Arnel T. Gere was an able seaman who signed a nine-month contract with Anglo-Eastern Crew Management. In January 2014, he fell awkwardly on his right arm while placing a rat guard on board the vessel. He was repatriated to the Philippines and treated by the company-designated physician, who diagnosed a closed fracture of the right radius.

The company-designated physician issued an interim disability grading of "Grade 10 – loss of grasping power" in April 2014, and a final grading of "Grade 10 – ankylosed wrist in normal position" in August 2014. However, these assessments were contained in letters addressed to another company doctor — not to Gere himself. Gere claimed he was never informed of these gradings.

After more than 240 days of treatment without receiving any assessment, Gere consulted his own physician, who rated his disability at Grade 8 (33.59% impediment) and declared him permanently unfit for sea duty. Gere then filed a claim for total and permanent disability benefits.

The Issue: What Does "Issuance" of an Assessment Mean?

The central issue was whether the company-designated physician had validly issued a final disability grading within the prescribed period. The employer argued that it had, pointing to the internal letters and an email offering to settle Gere's claim.

The Supreme Court disagreed, emphasizing a crucial distinction: issuing an assessment is not the same as giving it to the seafarer. The Court held that the seafarer must be fully and properly informed of his medical condition, including the disability grading, by the company-designated physician. This means the seafarer must personally receive a medical certificate, or it must be sent to him through proper channels. This is a matter of due process.

The 120-Day and 240-Day Rules

The Court reiterated the guidelines from Elburg Shipmanagement Phils., Inc. v. Quiogue, Jr. (765 Phil. 341 [2015]):

• The company-designated physician must issue a final medical assessment within 120 days from the time the seafarer reported to him.
• If the physician fails to do so without justifiable reason, the disability becomes permanent and total.
• The period may be extended to 240 days only if there is sufficient justification, such as the need for further treatment. The employer bears the burden of proving this justification.
• If no assessment is given within 240 days, the disability becomes permanent and total regardless of justification.

In this case, the employer presented no justification for extending the 120-day period. More importantly, the Court found that Gere was only informed of the disability grading 250 days after his repatriation — and only after he had already filed a case. By that time, the 240-day period had already lapsed, and Gere's disability had become permanent and total by operation of law.

The Third-Doctor Referral: Not a Shield for Employers

The employer argued that Gere should have referred the matter to a neutral third doctor when his personal physician disagreed with the company's assessment. The Court rejected this argument.

Under Section 20(B) of the POEA Standard Employment Contract, the third-doctor referral is mandatory when there is a disagreement between the company-designated physician and the seafarer's physician. However, this process can only begin when the seafarer is properly informed of the company's assessment. As the Court explained, a seafarer cannot contest an assessment he was never given. To require the seafarer to seek a third doctor without first informing him of the company-designated physician's assessment would be a clear violation of due process.

The Award: POEA Contract Applies, Not the CBA

While Gere won his claim for total and permanent disability, the Court had to determine the amount of benefits. The Collective Bargaining Agreement (CBA) between AMOSUP and the employer provided for US$95,949.00 for ratings with 50% or more disability. However, Gere's own physician assessed him at only 33.59% impediment, and the company doctor never certified him as permanently unfit. Therefore, the CBA's medical unfitness clause did not apply.

Instead, the Court applied the POEA Standard Employment Contract, which entitles a seafarer with total and permanent disability to US$60,000.00 (120% of US$50,000.00). The Court affirmed the Court of Appeals' ruling on this point.

Practical Takeaways

• Employers must ensure actual notice. A disability assessment that is not communicated to the seafarer is, for all legal purposes, non-existent. The company-designated physician must issue a medical certificate and ensure the seafarer personally receives it.
• The 120/240-day clock is strict. If the company-designated physician fails to issue a final assessment within 120 days (or 240 days with justification), the seafarer's disability becomes permanent and total by operation of law.
• The third-doctor rule cuts both ways. Seafarers must respect the mandatory referral process when properly informed of an assessment. But employers cannot invoke this rule if they failed to give the seafarer the assessment in the first place.
• Know which benefits apply. The amount of disability benefits depends on the applicable contract. If the CBA's 50% threshold is not met and the company doctor does not certify unfitness, the POEA-SEC's US$60,000.00 benefit applies instead.
• Document everything. Seafarers should keep records of all medical consultations, treatments, and communications with the employer. Timely consultation with a personal physician is also important when no assessment is received.

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