When "Not Fit for Duty" Means Total Disability: The Bandico Ruling

The case of Bandico v. Philippine Transmarine Carriers, Inc. (G.R. No. 242096, February 3, 2021) clarifies a critical point for overseas Filipino seafarers: a medical report that gives a partial disability grade while simultaneously declaring the seafarer "not fit for duty" is contradictory and will not be honored by the courts. The Supreme Court reinstated the grant of total and permanent disability benefits to a seafarer whose own company-designated physicians declared him unfit for sea duty despite assigning him partial disability grades.

The Facts of the Case

Ranilo Bandico was hired as an Oiler by Philippine Transmarine Carriers, Inc. for its foreign principal, Royal Caribbean Cruises, Ltd., under an eight-month contract. In February 2011, he slipped on a metal ladder on board the vessel, injuring his right knee and leg. Despite the injury, he remained on board and was given oral medications by the ship doctor. He was later examined by offshore doctors in Honduras and Mexico, who diagnosed post-traumatic prepatellar bursitis with secondary infection.

Bandico was medically repatriated to the Philippines on March 5, 2011. The company-designated physicians from Shiphealth, Inc. took over his care. An MRI revealed disc herniation with spinal canal stenosis. His attending surgeon advised a transforaminal lumbar interbody fusion, but Bandico refused, as the procedure would only relieve pain and not guarantee complete recovery. His chosen physician later declared him "no longer fit to return to work."

On June 25, 2011—the 112th day from repatriation—the company-designated physicians issued a Final Medical Summary. They gave Bandico a disability grading of Grade 8 for his spine and Grade 10 for his knee under the POEA-SEC schedule. Yet the same report declared him "NOT FIT FOR DUTY" and closed his case.

The Procedural History

The Labor Arbiter ruled in favor of Bandico, awarding him US$60,000.00 in total and permanent disability benefits plus attorney's fees. The NLRC affirmed. The Court of Appeals initially affirmed but later reversed itself in an Amended Decision, holding that Bandico was only entitled to partial disability benefits corresponding to Grades 8 and 10, totaling US$26,870.00.

The Supreme Court's Ruling

The Supreme Court reversed the Court of Appeals and reinstated the NLRC decision. The Court held that the company-designated physicians' Final Medical Summary was contradictory and could not be considered a complete and appropriately issued medical assessment.

The Court cited the ruling in Olidana v. Jebsens Maritime, Inc.: a disability grading under Section 32 of the POEA-SEC can only be considered if it is properly established and contained in a valid and timely medical report. Where a seafarer is declared "not fit for duty" but is simultaneously given partial disability grades, the report is internally inconsistent. A partial disability signifies a continuing capacity to perform customary tasks—a finding starkly incompatible with being unfit for sea duty.

Because the company-designated physicians failed to issue a final and conclusive medical assessment within the 120- or 240-day period, the law stepped in to declare that Bandico suffered total and permanent disability. The Court also rejected the respondents' argument that Bandico should suffer the consequences of refusing surgery, noting that his refusal was reasonable given that the procedure did not guarantee full recovery.

Why This Matters

The case reinforces that the disability grading system under the POEA-SEC is not a mechanical exercise. When a medical report contains contradictions, courts will not blindly apply the grades. The true test of disability remains the impairment of the seafarer's earning capacity, not merely the medical labels attached to the condition.

Practical Takeaways

• A company-designated physician's assessment must be complete and consistent. A declaration of "not fit for duty" alongside partial disability grades is contradictory and may be disregarded.
• Seafarers may be entitled to total and permanent disability benefits even when given partial disability grades, if the medical report simultaneously declares them unfit for sea duty.
• The 120/240-day rule under Section 20(B) of the POEA-SEC remains crucial: a timely but defective medical assessment may still result in total disability benefits.
• A seafarer's refusal of surgery is not fatal to a disability claim when the procedure offers no guarantee of recovery and only addresses pain.
• The true measure of disability is the seafarer's capacity to earn and return to customary work, not the medical significance of the injury alone.

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