Romil T. Olaybal v. Osg Shipmanagement Manila

Summary

This case involves a seafarer's claim for total permanent disability benefits following a work-related eye injury. Olaybal, an oiler, suffered retinal detachment and cataract after acid exposure while repairing ship equipment in July 2010. The Labor Arbiter and NLRC awarded full disability benefits under the CBA, but the Court of Appeals and Supreme Court reduced this to partial disability benefits. The Supreme Court ruled that Olaybal prematurely filed his claim before the 240-day medical treatment period expired and without following proper procedures under the POEA-SEC. The company-designated physician had issued only an interim Grade 7 assessment, not a final certification. The Court emphasized that temporary total disability becomes permanent only when declared by the company physician within 240 days or upon expiration of said period without declaration. Olaybal was awarded US$37,244.00 for Grade 7 partial permanent disability and US$1,000.00 attorney's fees, with moral damages deleted for lack of bad faith.