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The Magna Carta of Filipino Seafarers: Impact on Claims and Compensation

January-18-2025

The Magna Carta of Filipino Seafarers, which can now be fully implemented on January 25, 2025, after the publication of its Implementing Rules and Regulations (IRR) on January 8, 2025, introduces critical changes aimed at streamlining the claims process and ensuring fair treatment for seafarers.

For years, unscrupulous individuals and entities have preyed on injured or distressed seafarers, offering legal services with exorbitant fees. This practice, known as ambulance chasing, has plagued the maritime industry, leaving many seafarers trapped in a cycle of debt and despair while shipowners often face increased costs and legal complications.

The Magna Carta, however, directly addressed this issue of predatory legal practices. By mandating a 10% cap on legal fees and requiring lawyers to submit sworn affidavits outlining their commitment to ethical conduct, the law establishes a clear framework for fair and transparent legal representation. Non-lawyers are also prohibited from representing seafarers in legal proceedings which effectively removes unqualified and unethical individuals from the legal process, ensuring that seafarers receive competent and ethical representation. These provisions will significantly curtail the ability of ambulance chasers to exploit vulnerable seafarers.

Furthermore, the Magna Carta introduces a groundbreaking process for resolving disputes over disability grading and fitness to work. The establishment of a mandatory third-doctor system, with accredited specialists trained in maritime disability assessment, ensures objectivity and fairness in evaluating seafarers' medical conditions. This eliminates the ambiguity and potential for manipulation that previously existed, allowing for quicker and more equitable resolutions. If a seafarer's doctor issues a different disability grading, the seafarer must file a written request with the Department of Migrant Workers (DMW) within 30 days of receiving the findings to refer the conflicting medical grading to a third doctor.

The Magna Carta also addresses the issue of delayed justice. By allowing for the immediate execution of undisputed amounts in disability or death claims, even while cases are pending appeal, the law provides much-needed financial relief to seafarers and their families.

It's important to clarify how this works:

Undisputed Amounts: While a decision cannot be automatically enforced against manning agents/shipmanagers/shipowners while the case is pending appeal, any undisputed amount acknowledged as legally due is immediately executory. For example, if a company is willing to pay US$25,000 for a Grade 6 disability as assessed by the company-designated physician, but the NLRC or Voluntary Arbitrator awards US$60,000, the seafarer can only immediately execute the US$25,000.
Disputed Amounts: To enforce the full judgment award, the seafarer or heirs must post a sufficient bond to ensure restitution of the received amount if the appeal is unsuccessful. The bond cost is reimbursed by the losing party if the seafarer ultimately prevails. If the Court of Appeals or Supreme Court reverses or modifies the judgment, the shipowner/shipmanagers /manning agents can recover the amounts paid from the bonding company.

While the Magna Carta is not a silver bullet that will instantly eradicate ambulance chasing, it is a significant step in the right direction. By providing clear guidelines, strengthening legal representation, and ensuring fair and timely compensation, it creates a more secure and just environment for Filipino seafarers. It represents a paradigm shift in the maritime industry. By promoting transparency, fairness, and accountability, it not only protects the rights of seafarers but also fosters a more equitable and just environment for all stakeholders.

The fight against ambulance chasing is far from over, but with this landmark legislation in place, the future for Filipino seafarers looks brighter than ever. This is expected to improve the Philippines' reputation in the global maritime industry and potentially reduce litigation costs for shipowners.

Here is link to

REPUBLIC ACT NO. 12021 AN ACT PROVIDING FOR THE MAGNA CARTA OF FILIPINO SEAFARERS: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/97866

Implementing Rules and Regulations of Magna Carta of Filipino Seafarers: https://marina.gov.ph/wp-content/uploads/2025/01/Signed-IRR-RA-NO.-12021_for_website.pdf

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The Magna Carta of Filipino Seafarers: Impact on Claims and Compensation

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