6/5/2020
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When respondent was declared fit to work 144 days from the date of his medical
repatriation, he cannot be considered under the state of permanent total disability.
Hence, he cannot be said to have acquired a cause of action for total and permanent
disability benefits. To stress, the rule is that a temporary total disability only becomes
permanent when the company-designated physician, within the 240-day period,
declares it to be so, or when after the lapse of the same, he fails to make such
declaration. In this case, he was declared fit to work 144 days from the date of his
medical repatriation or before the lapse of 240 days.
Petitioners reiterated that the findings and/or assessments of the company-designated
physician are final and form the basis on whether or not respondent can claim for
disability benefits as per provisions of the POEA Standard Employment Contract. As the
company-designated physician declared him fit, then he should not be awarded
disability benefits.[38]
The claim for sickness and permanent disability benefits arose from the stipulations in
the standard format contract of employment pursuant to a circular of the POEA. Such
circular was intended for all parties involved in the employment of Filipino seamen on
board any ocean-going vessel. The POEA Contract, of which the parties are both
signatories, is the law between them and as such, its provisions bind both of them.
Thus, the parties are both bound by the provisions of the POEA contract which declares
that the degree of disability or fitness to work of a seafarer should be assessed by the
company-designated physician.[39]
The relevant provision of the 1996 POEA Standard Employment Contract states:
SECTION 20. COMPENSATION AND BENEFITS
xxxx
B. COMPENSATION AND BENEFITS FOR INJURY OR ILLNESS
The liabilities of the employer when the seafarer suffers work related injury
or illness during the term of his contract are as follows:
xxxx
3. Upon sign-off from the vessel for medical treatment, the seafarer is
entitled to sickness allowance equivalent to his basic wage until he is
declared fit to work or the degree of permanent disability has been assessed
by the company-designated physician hut in no case shall this period exceed
one hundred twenty (120) days.
For this purpose, the seafarer shall submit himself to a postemployment medical examination by a company-designated
physician within three working days upon his return except when he is
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