In their Comment,[13] respondents invoke the liberal interpretation of the
provisions of the Standard Contract, particularly Section 20 (A) 4 thereof, such
that it should be read to mean that it is sufficient that the illness which led to the
death occurred during the term of the employment contract, and that the illness
which led to the death need not be work-connected.
The resolution of the case hinges on one ultimate question of law, which is,
whether, under the Standard Contract, the death of a seafarer after the term of
his contract entitles his heirs to death benefits.
The answer is no. The petition is therefore meritorious.
Central to the resolution of the case are the provisions of Section 20 of the
Standard Contract, which read:
SECTION 20. COMPENSATION AND BENEFITS
A. COMPENSATION AND BENEFITS FOR DEATH
1. In the case of work-related death of the seafarer during the term
of his contract the employer shall pay his beneficiaries the Philippine
Currency equivalent to the amount of Fifty Thousand US dollars (US$50,000)
and an additional amount of Seven Thousand US dollars (US$7,000) to each
child under the age of twenty-one (21) but not exceeding four (4) children, at
the exchange rate prevailing during the time of payment.
x x x
4. The other liabilities of the employer when the seafarer dies as a result of
work-related injury or illness during the term of employment are as
follows:
a. The employer shall pay the deceaseds beneficiary all outstanding
obligations due the seafarer under this Contract.
b. The employer shall transport the remains and personal effects of the
seafarer to the Philippines at employers expense except if the death