Seafarer Disability Claims: The Mandatory Third Doctor Rule and Compensation

The Supreme Court's decision in Murillo v. Philippine Transmarine Carriers, Inc. (G.R. No. 221199, August 15, 2018) clarifies a critical rule for Filipino seafarers claiming disability benefits: the mandatory referral to a third doctor when the company-designated physician and the seafarer's own doctor disagree. This case also reminds employers and seafarers alike that a failure to follow this procedure has specific consequences—and that a court cannot simply dismiss a valid claim outright.

The Facts of the Case

Geminiano S. Murillo was hired as an able seaman by Norwegian Crew Management A/S through its Philippine manning agent, Philippine Transmarine Carriers, Inc. In January 2013, while securing a lifeboat aboard the vessel "THORSCAPE," he injured both knees. He was diagnosed with osteoarthritis and repatriated for medical treatment.

Upon return to the Philippines, Murillo was examined by the company-designated physician, Dr. Robert D. Lim, who assessed his disability as "Grade 10 x 2—stretching leg or ligaments of a knee." Murillo disagreed and consulted his own physician, Dr. Rogelio P. Catapang, who declared him permanently unfit for sea duties.

When the parties failed to settle, Murillo filed a complaint for disability benefits. The Labor Arbiter ruled in his favor, awarding US$90,000. The NLRC affirmed. But the Court of Appeals reversed, dismissing the complaint entirely on the ground that Murillo failed to refer the conflicting medical opinions to a third doctor—a procedure the appellate court called mandatory.

The Issue Before the Supreme Court

The core question was whether the Court of Appeals erred in dismissing the complaint outright due to Murillo's failure to invoke the third doctor rule, and whether the company-designated physician's assessment should have been treated as final and binding.

The Ruling: Third Doctor Referral Is Mandatory

The Supreme Court affirmed that the referral to a third doctor is indeed mandatory under the POEA Standard Employment Contract (POEA-SEC). Citing Andrada v. Agemar Manning Agency, Inc. and Formerly INC Shipmanagement, Inc. v. Rosales, the Court explained that the company-designated physician's assessment prevails unless the seafarer expresses disagreement by requesting a joint referral to a third doctor. The third doctor's decision is final and binding on both parties.

In this case, Murillo failed to initiate that procedure. He instead filed a complaint based on his personal physician's opinion. This was a breach of the POEA-SEC, making the company-designated physician's assessment final and binding.

The Error: Dismissing the Claim Entirely

However, the Supreme Court also found reversible error in the Court of Appeals' decision to dismiss the complaint completely. The appellate court had itself recognized that the company-designated physician's assessment was credible. That assessment showed Murillo suffered a work-related injury to both knees, graded at Grade 10 each.

The Court noted that the company-designated physician's findings indicated Murillo suffered from an injury in both knees during his employment, later diagnosed as osteoarthritis, which prompted the Grade 10 disability rating. Rather than completely dismissing the complaint, the Court held that Murillo should have been awarded compensation equivalent to the injury he sustained, as assessed by the company-designated physician.

The Court applied the POEA-SEC's schedule of disability allowances to determine the amount due. Based on the assessment of Grade 10 for each knee, the Court computed Murillo's entitlement at US$20,150.00 total—not the US$90,000 the Labor Arbiter had awarded, but also not zero, as the Court of Appeals had effectively ruled.

The Court modified the Court of Appeals' decision, declaring Murillo entitled to US$20,150.00, and ordered him to return any amount received in excess of that figure.

Practical Takeaways

• The third doctor rule is not optional. If the company-designated physician and the seafarer's personal doctor disagree, the seafarer must request a joint referral to a third doctor. Failure to do so makes the company-designated physician's assessment final and binding.
• Act promptly. The seafarer should seek the third-doctor referral as soon as the conflict in medical opinions arises, not after filing a complaint.
• A valid claim is not automatically lost. Even if the seafarer breaches the third doctor rule, the company-designated physician's assessment still governs—and if that assessment shows a disability, the seafarer is entitled to the corresponding compensation.
• Know the POEA-SEC schedule. Disability compensation is computed based on the Schedule of Disability Allowances under the POEA-SEC. The specific percentage and amount for each disability grade are set out in that schedule.
• Seek legal advice early. Navigating the rules on disability claims involves strict procedural steps. Consulting a lawyer or a qualified legal AI service can help seafarers avoid costly mistakes.

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