6/7/2020
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ART. 192. Permanent Total Disability.
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(c) The following disabilities shall be deemed total and permanent:
(1) Temporary total disability lasting continuously for more than one
hundred twenty days, except as otherwise provided in the Rules;
[Emphasis supplied]
The rule referred to is Rule X, Section 2 of the Amended Rules on
Employees' Compensation, implementing Book IV of the Labor Code (IRR),
which states:
Sec. 2. Period of entitlement. — (a) The income benefit shall be paid
beginning on the first day of such disability. If caused by an injury or
sickness it shall not be paid longer than 120 consecutive days except
where such injury or sickness still requires medical attendance
beyond 120 days but not to exceed 240 days from onset of disability in
which case benefit for temporary total disability shall be paid. However, the
System may declare the total and permanent status at anytime after 120
days of continuous temporary total disability as may be warranted by the
degree of actual loss or impairment of physical or mental functions as
determined by the System. [Emphasis and Underscoring Supplied]
These provisions should be read in relation to the 2000 Philippine Overseas
Employment Administration Standard Employment Contract (POEA-SEC)[19]
whose Section 20 (B) (3) states:
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 but in no case shall this period exceed
one hundred twenty (120) days.[Emphasis Supplied]
In Crystal Shipping, Inc. v. Natividad,[20] (Crystal Shipping) the Court ruled
that "[permanent disability is the inability of a worker to perform his job for
more than 120 days, regardless of whether or not he loses the use of any
part of his body."[21] Thereafter, litigant-seafarers started citing Crystal
Shipping to demand permanent and total disability benefits simply because
they were incapacitated to work for more than 120 days.
The Court in Vergara v. Hammonia Maritime Services, Inc.[22] (Vergara),
however, noted that the doctrine expressed in Crystal Shipping — that
inability to perform customary work for more than 120 days constitutes
permanent total disability — should not be applied in all situations. The
specific context of the application should be considered in light of the
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