Escrow provision in Magna Carta protects seafarers from 'ambulance chasers'


At a glance

  • The House of Representatives has approved the Magna Carta for Filipino Seafarers on third and final reading.

  • House Bill (HB) No. 7325, which was passed via 304 (yes) votes, four (no) votes, and no abstention, provides for a standard employment contract of the seafarers that contains the terms and conditions of employment duly approved by the Department of Migrant Workers (DMW).

  • Photo from the Maritime Industry Authority (MARINA)


The proposed Magna Carta for Filipino seafarers under House Bill (HB) No. 7325 has been approved on the third and final reading at the House of Representatives, which also granted the escrow deposit provision that would protect seafarers from so-called ambulance chasers or lawyers who file claims against shipowners in the hopes of pocketing the monetary award.

HB 7325, which outlines the rights and welfare of seafarers, was passed via a 304 (yes)-4 (no) votes with no abstention last week.

The bill, sponsored by Kabayan Party-list Rep. Ron Salo, provides for a standard employment contract of the seafarers that contains the terms and conditions of employment duly approved by the Department of Migrant Workers (DMW).

“This is to protect the rights and promote the welfare of Filipino seafarers by providing a code of laws or Magna Carta, which contains their rights, duties, conditions of employment, minimum requirements to work on a ship, and other entitlements, together with the duties and responsibilities of the shipowners and manning agencies,” the committee report on the measure read.

“This is also to recognize seafarers as essential workers that need special protection, and grant them certain rights as maritime workers to ensure that they are treated fairly at all times, especially in the event of a maritime accident, epidemic, pandemic, or other natural or man-made crises,” it added.

The House Committee on Overseas Workers, is chaired by Salo, with Reps. Sandro Gonzalez of Marino Party-list, Marissa “Del Mar” Magsino of OFW Party-list, Elizaldy Co of Ako Bicol Party-list, and Rachel Arenas of the 3rd District of Pangasinan as members.

But more importantly for the seafarers was the success of the House panel in including the escrow deposit provision in the execution of final and executory decisions of both the National Labor Relations Council (NLRC) and the National Conciliation and Mediation Board (NCMB) in the version of the approved bill.

The absence of such provision was advantageous to ambulance chasers, the term used for lawyers’ agents who lurk around medical clinics and hospitals frequented by Filipino seafarers who undergo treatment for sickness or injuries whether such was incurred onboard or not.

They persuade seafarers to file claims against the shipowners with promises of big monetary reward, 50 percent of which goes to them.

However, ambulance chasers fail to mention to the clients that the decision of the NLRC and NCMB could be overturned by the Court of Appeals and the Supreme Court.

In such event, the seafarers would be forced to pay back the full amount of the monetary award while the ambulance chasers get away with keeping their share.

The escrow deposit provision would ensure that this doesn’t happen again by putting the funds in escrow and granting them to either the seafarer or shipowner once the Supreme Court has decided on the case.

Through the provision, the judgment award money along with the interest earned would be safe from ambulance chasers, thereby protecting the seafarers’ interest if a return was ordered by the court upon appeal.

The presence of ambulance chasers has reportedly turned off foreign shipowners because the amount of the claim had been multiplied by the ambulance chasers and because shipowners couldn’t recover the money they paid after a loss at the NLRC and NCMB level.