Philippines: New Ambulance Chaser Protection

The Japan P&I Club reports the enactment of a new law “An Act Protecting Seafarers Against Ambulance Chasing and Imposition of Excessive Fees and Providing Penalties Therefor” (simply called the Seafarers Protection Act) in the Philippines.

The law is reported by Philippines-based Del Rosario Pandiphil Inc. The act recognizes that seafarers, who have suffered disability or death, have fallen victims to an unfair scheme where unscrupulous lawyers promise them huge monetary award in exchange for exorbitant fees and intends to put an end to such situation.

Ruben Del Rosario, President of Del Rosario Pandiphil, says: “The act now prohibits any person to engage in ambulance chasing or the act of soliciting, personally or through an agent, from seafarers or their heirs, the pursuit of any claim against their employers for the purpose of recovery of monetary claim or benefit including legal interest arising from accident, illness or death, in exchange for an amount or fee which shall be retained or deducted from the monetary claim or benefit granted to or awarded to the seafarer or their heirs.

“When a contract or arrangement is entered into between a seafarer and/or his heirs and a party representing them on the claim where such representative would be entitled to fees, such fees shall not exceed 10 percent of the compensation or benefit awarded to the seafarer or his heirs.”

Punishments under the act include a fine not less than PHP50,000.00 ($1,000) but not more than PHP100,000.00 ($2,000) or imprisonment of not less than one year but not more than two years or both fine and imprisonment. 

The act will take effect on December 16, 2015.