When a Company Doctor's Silence Ends a Seafarer's Claim: The Lingering Duty to Assess

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A seafarer who is repatriated for a medical condition faces an anxious wait: will the company-designated physician declare fitness to work, or a disability grade? That wait cannot go on forever. In Unitra Maritime Manila, Inc. v. Campanero (G.R. No. 238545, September 7, 2022), the Supreme Court ruled that when a company-designated physician fails to issue a final and definite disability assessment within the 120-day or extended 240-day period, the seafarer's disability is deemed total and permanent by operation of law — and the employer cannot escape liability by pointing to the seafarer's failure to seek a third-doctor opinion.

The Facts

Giovannie Campanero was hired as Second Officer by Unitra Maritime Manila, Inc. for its foreign principal, VT Maritime Inc., under a contract governed by the POEA-Standard Employment Contract (POEA-SEC) and a collective bargaining agreement (CBA). In May 2014, while lifting heavy provisions on board the vessel, he felt weakness in his lower extremities and later developed sharp lower back pain and numbness in his right leg.

After being diagnosed with disc hernia in Japan, Campanero was repatriated and referred to the company-designated physicians at Manila Doctors Hospital. His condition deteriorated: an MRI revealed arteriovenous malformation with ruptured intramedullary bleeding. He underwent surgery and rehabilitation, but by April 2015, the company withheld further medical aid. No disability grading was ever issued — even after 240 days had lapsed.

Campanero then consulted independent physicians who found him with paraplegia, 90 percent sensory deficits in the lower extremities, and bowel and bladder incontinence. He was declared permanently unfit for work.

The Issue

Was Campanero entitled to permanent and total disability benefits, and could he claim under the CBA?

The Ruling

The Supreme Court affirmed the Court of Appeals, holding that Campanero was entitled to permanent and total disability benefits, sickness allowance, attorney's fees, and interest.

The company-designated physician's failure to assess was fatal. Under the POEA-SEC, the company-designated physician must issue a final and definite assessment of the seafarer's fitness or degree of disability within 120 days from repatriation, extendable to 240 days when further medical attention is necessary. Here, the medical reports issued — one at 11 days of treatment, another at 242 days — were merely interim. Neither contained a definite statement of fitness or a disability rating. The Court emphasized that an incomplete or doubtful assessment, even from a company-designated physician, will be disregarded.

No third-doctor referral was required. The seafarer's duty to refer a disagreement to a third doctor presupposes that the company-designated physician actually issued an assessment. Since none was made, there was nothing for Campanero to contest. The law automatically stepped in to deem his disability total and permanent.

The illness was work-related. While the company-designated physician declared hematomyelia "not work-related," the Court found a reasonable linkage between Campanero's work and his condition. The seafarer's duties involved lifting heavy objects and handling mooring stations — tasks requiring physical exertion. Under Section 20(A)(4) of the POEA-SEC, illnesses not listed under Section 32 are disputably presumed work-related. The employer failed to overcome this presumption. The Court reiterated that it is enough that the seafarer's employment contributed, even in a small degree, to the development of the disease.

The CBA rates applied. Because Campanero was deemed totally and permanently disabled (Grade 1, equivalent to 100 percent impediment), the CBA rate for a Junior Officer in 2014 applied: US$127,932.00. He also received sickness allowance of US$4,181.67, attorney's fees of 10 percent, and 6 percent legal interest from finality of judgment.

Practical Takeaways

• The 240-day rule is a hard deadline. A company-designated physician who fails to issue a final, categorical disability assessment within 120 days (extendable to 240) risks having the seafarer's disability deemed total and permanent by operation of law.
• Interim reports do not count. A report that merely notes a diagnosis or recommends further treatment — without a definite fitness-to-work statement or disability grading — will be disregarded.
• The third-doctor rule only applies when there is a conflict. If the company-designated physician never issued an assessment, the seafarer has nothing to contest, and no referral to a third doctor is required.
• Work-relatedness is a low threshold. The seafarer need only show a reasonable linkage between work and illness — not direct causation. Illnesses not listed under Section 32 of the POEA-SEC are disputably presumed work-related, shifting the burden to the employer.
• Employers should document assessments promptly. A timely, complete, and well-explained disability assessment protects both the employer's interests and the seafarer's right to certainty.

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