4/9/2020 E-Library - Information At Your Fingertips: Printer Friendly it is the incapacity to work resulting in the impairment of one’s earning capacity.[30] (Emphases ours, citations omitted.) The application of the Labor Code, its implementing rules and regulations, and the terms of the POEA SEC with regard to a seafarer’s entitlement to disability benefits was further clarified by this Court in Vergara v. Hammonia Maritime Services, Inc.,[31] wherein we said: The standard terms [of the POEA SEC] agreed upon, x x x, are intended to be read and understood in accordance with Philippine laws, particularly, Articles 191 to 193 of the Labor Code and the applicable implementing rules and regulations in case of any dispute, claim or grievance. Award of Disability Benefits The petitioners also argue that the case is premature as Penales was still undergoing treatment when he filed the complaint; thus, the possibility of his recovery cannot be discounted.[32] In his memorandum, [33] Penales emphasized that his inability to perform his customary work for more than 120 days constitutes permanent total disability, and according to the applicable laws and jurisprudence, he is entitled to an award of total and permanent disability.[34] The Labor Arbiter found, and the NLRC and the Court of Appeals agreed, that Penales indeed suffered work-related injury during his employment with the petitioners, which rendered him unable to perform his customary work as a seafarer. Since Penales was found to be disabled in all prior decisions, the only bone of contention here now is the amount of disability benefits to be awarded to Penales. This Court notes that as of January 26, 2001, Penales’s medical treatment had gone beyond the 120 days provided for in Section 20 B(6) of the POEA SEC, viz: B. Compensation and Benefits for Injury or Illness 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 but in no case shall this period exceed one hundred twenty (120) days. elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/55144 7/12