Seafarers Disability Claims Upholding Company Doctors Assessment Absent Third Opinion

The Supreme Court recently settled an important question for Filipino seafarers: what happens when the company doctor and the seafarer's own physician disagree on a disability assessment? In MST Marine Services (Philippines), Inc. v. Asuncion (G.R. No. 211335, March 27, 2017), the Court ruled that when a seafarer fails to seek a third-doctor opinion, the company-designated physician's assessment prevails—provided it is based on objective medical procedures. The case also clarified that the mere lapse of 120 days does not automatically entitle a seafarer to total and permanent disability benefits.

The Facts of the Case

Teody Asuncion was hired as a GP1 Motorman by MST Marine Services for a nine-month contract aboard the M/V Monte Casino. In July 2009, he fell on the vessel's Poop Deck and felt persistent back pain. He was repatriated to Manila on August 22, 2009, and referred to Dr. Nichomedes Cruz, the company-designated physician at Manila Doctors Hospital.

Dr. Cruz initially diagnosed "Lumbosacral Strain." An MRI and EMG-NCV both returned normal results. On March 16, 2010, Dr. Cruz assessed Asuncion with Disability Grade 8—moderate rigidity with two-thirds loss of motion or lifting power of the trunk.

Meanwhile, Asuncion had filed a complaint for total and permanent disability benefits on January 6, 2010. It was only on March 10, 2010—after filing the complaint—that he consulted his own physician, Dr. Nicanor Escutin, who declared him permanently disabled and unfit for sea duty.

The Issue

The central question was whether Asuncion was entitled to total and permanent disability benefits despite the company-designated physician's assessment of only a partial disability (Grade 8), and whether his failure to seek a third-doctor opinion affected his claim.

The Ruling

The Supreme Court denied the petition but for reasons different from the Court of Appeals. The Court clarified that the mere lapse of the 120-day period does not automatically warrant payment of total and permanent disability benefits. Citing Vergara v. Hammonia Maritime Services, Inc., the Court explained that a temporary total disability becomes permanent when declared by the company-designated physician within the allowed period, or upon expiration of the maximum 240-day treatment period without any declaration.

More importantly, the Court emphasized the POEA-SEC's third-doctor-referral provision. Under Section 20(A)(3) of the POEA-SEC, when the seafarer's physician and the company-designated physician disagree, a third doctor must be jointly appointed for a final assessment. Asuncion neither sought referral to a third doctor nor explained his failure to do so.

The Court also found that Dr. Cruz's assessment was based on objective scientific procedures—including MRI and EMG-NCV tests conducted at his clinic, with an orthopedic surgeon reviewing the results. By contrast, Dr. Escutin's "final" diagnosis was based only on a physical examination, and he even recommended further diagnostic tests in the same certificate where he declared Asuncion permanently disabled.

The Conditional Payment Issue

Despite ruling against Asuncion on the merits, the Court refused to order restitution of the P2,797,080.00 he had received. The payment was made under a "Conditional Satisfaction of Judgment" and an Affidavit where Asuncion waived all further claims. Citing Career Philippines Ship Management, Inc. v. Madjus and Philippine Transmarine Carriers, Inc. v. Legaspi, the Court found the agreement prejudicial to the employee—it barred Asuncion from filing any future claims while allowing the employer to continue its appeal. The payment was therefore treated as a voluntary settlement in full satisfaction of the NLRC decision.

Practical Takeaways

• The 120-day rule is not automatic. A seafarer does not automatically get total and permanent disability benefits merely because treatment exceeds 120 days. The company-designated physician's declaration—or the expiration of the 240-day period without one—is what matters.
• The third-doctor rule is mandatory. If the seafarer's private physician disagrees with the company-designated physician, the POEA-SEC requires the parties to jointly appoint a third doctor for a final, binding assessment. Failure to do so means the company doctor's findings prevail.
• Objective medical evidence wins. Courts will favor the assessment supported by diagnostic tests and objective procedures over a physician's general conclusion based solely on physical examination.
• Filing early can backfire. Filing a disability complaint before obtaining any medical basis—or before the company doctor completes the assessment—may be considered premature.
• Read settlement documents carefully. Conditional payments that waive the seafarer's future claims while preserving the employer's right to appeal may be deemed prejudicial, and the payment may be treated as a final voluntary settlement.

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