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It is settled that the above provisions of the Labor Code and the Amended Rules on
Employees Compensation on disabilities apply to seafarers;[42] the POEA Standard
Employment Contract, which respondent holds, is not the sole basis for determining
their rights in the event of work-related injury, illness or death. It may likewise be
true that under respondent’s POEA Standard Employment Contract, only those
injuries or disabilities that are classified as Grade 1 are considered total and
permanent. However, the Court has made it clear, in Kestrel Shipping Co., Inc. v.
Munar,[43] that –
x x x if those injuries or disabilities with a disability grading from
2 to 14, hence, partial and permanent, would incapacitate a
seafarer from performing his usual sea duties for a period of more
than 120 or 240 days, depending on the need for further medical
treatment, then he is, under legal contemplation, totally or
permanently disabled. In other words, an impediment should be
characterized as partial and permanent not only under the Schedule of
Disabilities found in Section 32 of the POEA-SEC but should be so under
the relevant provisions of the Labor Code and the Amended Rules on
Employee[s] Compensation (AREC) implementing Title II, Book IV of the
Labor Code. That while the seafarer is partially injured or disabled, he is
not precluded from earning doing [sic] the same work he had before his
injury or disability or that he is accustomed or trained to do. Otherwise,
if his illness or injury prevents him from engaging in gainful
employment for more than 120 or 240 days, as the case may be,
he shall be deemed totally and permanently disabled.
Moreover, the company-designated physician is expected to arrive
at a definite assessment of the seafarer’s fitness to work or
permanent disability within the period of 120 or 240 days. That
should he fail to do so and the seafarer’s medical condition
remains unresolved, the seafarer shall be deemed totally or
permanently disabled.
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Consequently, if after the lapse of the stated periods, the seafarer
is still incapacitated to perform his usual sea duties and the
company-designated physician had not yet declared him fit to
work or permanently disabled, whether total or permanent, the
conclusive presumption that the latter is totally and permanently
disabled arises.[44] (Emphasis supplied)
Thus, from the above, it can be said that an employee’s disability becomes
permanent and total when so declared by the company-designated physician, or, in
case of absence of such a declaration either of fitness or permanent total disability,
upon the lapse of the 120 or 240[45]-day treatment period, while the employee’s
disability continues and he is unable to engage in gainful employment during such
period, and the company-designated physician fails to arrive at a definite
3/27/2020, 12:44 PM