The contractual liability of an employer to pay sickwage allowance to a seafarer who
suffered illness or injury during the term of his contract is governed by the provisions of
Section 20(B)[3] of the Contract, viz.:
SECTION 20. COMPENSATION AND BENEFITS
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B. x x x
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3. Upon signoff 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 but in no case shall this period exceed one hundred twenty (120) days.
For this purpose, the seafarer shall submit himself to a post-employment medical
examination by a company-designated physician within three working days upon his
return except when he is physically incapacitated to do so, in which case a written
notice to the agency within the same period is deemed as compliance. Failure of the
seafarer to comply with the mandatory reporting requirement shall result in the
forfeiture of his right to claim the above benefits. x x x
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Arbit complied with the requirements for post-employment medical examination
under this Section. He reported at the St. Thomas Diagnostic, Medical and Dental
Clinic, Inc. on the day following his repatriation. He was declared x x x UNFIT for sea
duty by no less than the company-designated physician in a medical certificate dated
January 28, 1999. He was thus unfit until his death on December 29, 1999.
Fifth. Petitioner contends that the NLRC did not err when it did not award disability
benefits to Arbit due to misrepresentation.
The NLRC affirmed the factual finding of the Labor Arbiter which was based on the
following: 1) in his application for shipboard employment, Arbit ticked NO beside the
question ANY PREVIOUS ILLNESS;[28] 2) in his employment history, he did not state the
name of his last employer with whom he executed a Release and Quitclaim, dated
September 26, 1997, in consideration of the illness he suffered on board his vessel of
assignment; and, 3) in a medical certificate issued by the Metropolitan Hospital on July
23, 1996, Arbit was diagnosed to have hypertension, coronary artery disease and heart
failure.
The Labor Arbiter ruled, viz.: