GR 172925; (June, 2009) (Digest)
G.R. No. 172925 , June 18, 2009
Government Service Insurance System vs. Jaime K. Ibarra
FACTS
Respondent Jaime K. Ibarra, an employee of the Development Bank of the Philippines, developed hypertension and cataracts. After cataract extraction, he suffered retinal detachment in his left eye (improved by surgery) and later in his right eye, which led to total blindness despite surgery. He filed a claim for compensation benefits with petitioner GSIS, which was denied on the ground that retinal detachment was a non-occupational disease. The Employees’ Compensation Commission (ECC) affirmed the denial. The Court of Appeals reversed the ECC, finding sufficient evidence of a probable work connection between Ibarra’s hypertension and his retinal detachment, and ordered GSIS to pay appropriate benefits under P.D. No. 626, subject to set-off of his unpaid loans. This Court affirmed the Court of Appeals Decision. Subsequently, Ibarra demanded payment from GSIS, but GSIS issued a check equivalent to only 60 days (two months) of permanent partial disability benefits, accompanied by a letter stating there would be “NO MORE FORTHCOMING INCOME BENEFIT.” Ibarra filed a Motion for Assistance with the Court.
ISSUE
Whether the GSIS correctly computed and paid the permanent partial disability benefits due to Ibarra for the complete and permanent loss of sight in one eye under P.D. No. 626, as amended.
RULING
No. The Court treated Ibarra’s Motion for Assistance as a Motion for Clarification and granted it. Under Rule XII of the Amended Rules on Employees’ Compensation, the schedule for permanent partial disability provides that the complete and permanent loss of the sight of one eye entitles the employee to income benefits for a maximum period of twenty-five (25) months. The Court found that GSIS’s payment of only two months of benefits was clearly contrary to the affirmed rulings and was arbitrary, especially due to its failure to state the basis or present a computation supporting the amount paid after the permitted set-off of loans. The Court ordered GSIS to pay Ibarra permanent partial disability benefits for the maximum period of twenty-five (25) months, subject only to the deduction of previous partial payments and the set-off of his outstanding unpaid loans with GSIS, and to submit proof of compliance within ninety (90) days.