Affidavit of Closure for Seaman’s Fund Claim (Philippine Legal Context – 2025 Guide)

1. What the document is – and why it exists

Feature	Explanation
Definition	A sworn, notarised statement by a Filipino seafarer —or by the heirs/beneficiaries of a deceased seafarer—formally declaring that (i) all monetary and in-kind benefits arising from a specific “Seaman’s Fund” claim have been fully paid and received, and (ii) the claimant is closing and waiving any further demand arising from the same cause of action.
Common synonyms	“Affidavit of Closure and Quitclaim,” “Affidavit of Release,” “Full and Final Settlement,” “Quitclaim Receipt,” “Compromise Agreement (NCMB-assisted).”
Practical purpose	- Gives the manning agency / shipowner / P&I Club proof that the claim has been settled. - Allows the claimant to encash the settlement cheque or bank transfer. - Serves as an instrument for closing the file with the Overseas Workers Welfare Administration (OWWA), the Social Security System (SSS) Flexi-Fund, or private P&I insurers.
Usual trigger events	(a) Permanent disability benefit under the POEA-Standard Employment Contract (POEA-SEC); (b) Death benefit to heirs; (c) Reimbursement of medical expenses; (d) OWWA “Navigeåtors” livelihood grant; (e) Court-ordered or NCMB-assisted compromise.

“Seaman’s Fund” in Philippine usage is not one single statute-created fund. It loosely refers to any statutory or contract-based pool earmarked for Filipino seafarers—e.g., OWWA Welfare Fund (RA 10801), SSS Seafarers’ Flexi-Fund (RA 11199), or a shipowner’s P&I insurance proceeds governed by the POEA-SEC. Because all three ultimately flow to the same beneficiaries, the closing affidavit is normally drafted to cover “all funds and benefits under Philippine law, POEA contracts, CBA provisions, and international maritime conventions.”

2. Governing law and policy framework

Layer	Key sources	Highlights
Constitutional	1987 Constitution, Art. XIII (Labor)	Guarantees worker protection and encourages voluntary settlement.
Statutory	- Labor Code of the Philippines (PD 442, as amended) - OWWA Charter (RA 10801) - SSS Law (RA 11199)	Art. 227(a) allows amicable settlement; OWWA/SSS require proof of settlement to close benefit claims.
Administrative	- POEA-Standard Employment Contract for Seafarers (latest 2010/2022 versions) - DOLE Department Orders on mandatory conciliation-mediation (SEnA)	Sec. 29 of POEA-SEC deals with disability/death benefits; explicit reference to “receipt and quitclaim” being respected only if freely executed.
International	Maritime Labour Convention (MLC 2006) Reg. 4.2 & 4.6	Requires payment of outstanding wages and contractual compensation “without delay.”
Supreme Court jurisprudence	Gabunas v. Scanmar (G.R. 198587, 20 Feb 2019); Southeast Shipping v. Navarra (G.R. 167678, 24 Jan 2012); Magsaysay Maritime v. Launion (G.R. 197419, 3 Sept 2014); C.F. Sharp Crew v. Repiso (G.R. 182479, 10 Mar 2015).	These cases lay down the validity tests (see § 4). Courts will set aside a quitclaim if the consideration is inadequate or if duress/fraud exists.

3. Typical structure and drafting checklist

Title – “Affidavit of Closure and Quitclaim (Seaman’s Fund Claim)”
Appearances & capacity
- Name, age, citizenship, civil status, address
- If heir: state relationship, attach PSA death certificate & proof of kinship.
Recitals (“Whereas” clauses)
- Contract details: vessel name, IMO number, POEA contract no., embark/disembark dates.
- Nature of illness/injury or cause of death; reference medical report or AMOSUP clinic findings.
- Previous NCMB/POEA/SEnA docket numbers, if any.
Statement of Settlement
- Exact amounts (principal, interest, medical reimbursement, burial allowance).
- Mode of payment (manager’s cheque number / EFT reference) and date received.
- Confirmation that OWWA/SSS/P&I proceeds have likewise been accounted for.
Waiver & Release Clause
- “In consideration of the foregoing, I hereby release, discharge and forever quitclaim …”
- Insert savings clause: “except for benefits already vested by law that cannot be waived.”
No-duress declaration – “I executed this freely, voluntarily, and with full understanding…”
Legal Assistance acknowledgement
- Mandatory under Sec. 20(G) of the POEA-SEC if seafarer signs within Philippines; name of lawyer, NCMB conciliator, or ITF/AMOR Federation rep.
Dispute Resolution / Venue
- Usually “National Labor Relations Commission, NCR, Philippines.”
Affiant’s Signature & Thumbmark
- Use full thumb impression if claimant cannot sign.
Jurat (Notarial oath)
- Comply with the 2004 Rules on Notarial Practice: government-issued ID, competent evidence of identity, notary’s roll number, etc.

Annexes (attach for completeness)

POEA Contract (stamped “processing copy”)
Medical reports & vessel Master’s statement of facts
Settlement computation sheet, signed by both parties
Photocopy of cheque / bank proof of credit
If executed abroad: Apostille or Philippine Consular authentication

4. Validity tests laid down by Philippine courts

The Supreme Court generally considers an Affidavit of Closure valid only if the following concur (the four-fold test originally in Southeast Shipping v. Navarra and reiterated in later cases):

Test	Substance
1. Full disclosure	The consideration is clearly stated and explained to the seafarer/heirs in a language they understand (often Tagalog, Cebuano, Ilonggo).
2. Adequacy of consideration	The amount must not be unconscionably low relative to what the POEA-SEC or CBA guarantees. Jurisprudence voided quitclaims where the payment was <⅓ data-preserve-html-node="true" of legal entitlement.
3. Absence of fraud or coercion	Look for signature in the presence of a neutral NCMB conciliator or Philippine consular officer if abroad. The presence of spouses or legal counsel is a strong indicator of voluntariness.
4. Clear intent to relinquish	The language must unmistakably state a waiver of “any and all claims now or in the future” arising from the accident/illness.

Tip for employers: Even a perfectly drafted affidavit can still be invalidated if the medical grading turns out to be erroneous (e.g., a doctor later upgrades disability from Grade 8 to Grade 3). Include a clause that the company shall honour any higher disability grade subsequently adjudged by the POEA-licensed physician, to bolster the affidavit’s fairness.

5. Interaction with government agencies

Agency	What they require for final closure
OWWA	Membership record, death certificate/medical rep., proof of settlement, and the notarised Affidavit of Closure. Without the affidavit, OWWA keeps the claim “open” on its database.
Social Security System (SSS) – Flexi-Fund	For disability or survivor pension acceleration, SSS demands a quitclaim to prevent double recovery under RA 11199 § 13-B.
POEA / DMW	If the original claim was docketed under Single-Entry Approach (SEnA), the closing affidavit must be co-filed with the SEnA Form 7 (“Compromise Agreement”).
NLRC or NCMB	When a case is already filed, compromise must be recorded in open court (NLRC) or through NCMB-approved settlement agreement. The Affidavit of Closure is attached to the minutes and forms part of the decision/award.

6. Tax and stamp duties

Documentary Stamp Tax (DST). Under Sec. 188, NIRC of 1997, a “release or quitclaim of claim or demand” is subject to ₱15 DST, commonly stamped on the original affidavit.
Income tax. Disability and death benefits under a CBA or the POEA-SEC are exempt from income tax (NIRC § 32(B)(4)), so the amount stated in the affidavit is tax-free to the seafarer/heirs.
Notarial fees. The 2020 Revised Notarial Fee Schedule (IBP) caps fees at ₱200 for single-copy acknowledgments; manning agencies usually shoulder this.

7. Prescription and reopening of claims

Scenario	Limitations period	Key points
*Seeking annulment* of an already-signed Affidavit**	Four (4) years under Art. 1391 Civil Code (action to annul a voidable contract) or three (3) years under Art. 306 Labor Code (money wage claims) – whichever is shorter	The clock starts from date of signing. Courts sometimes allow tolling if intimidation is proven.
*Filing a new* claim for a separate injury**	Three (3) years from date of repatriation (Art. 306)	The previous affidavit does not bar unrelated illnesses/injuries. Draft affidavits narrowly to avoid blanket waiver beyond the incident in question.

8. Best-practice drafting tips

Specify the incident – State the exact illness, date, and vessel; avoid catch-all phrases (“any claim of whatever nature”) which have been frowned upon by the Supreme Court.
Use dual languages – Put English text on the left column and Filipino layman’s translation on the right; attach the seafarer’s acknowledgement that both versions are identical.
Attach settlement computation sheet – Shows how each peso was arrived at (schedule of disability grades under POEA-SEC, burial allowance, etc.).
Have the NCMB/SEnA officer sign as witness – Strengthens presumption of voluntariness.
Video documentation – A short phone video during signing helps defeat later allegations of intimidation.
Independent counsel – Offer the seafarer a lawyer paid by the agency (but not company counsel). Case law regards this as proof of “informed consent.”
Comply with GDPR/data-privacy – Explicitly allow processing of personal data for “legitimate interests in defending actual or threatened claims.”

9. Consequences of an invalid or defective affidavit

Defect	Result
No competent evidence of identity	Notarial act void; affidavit treated as private document and cannot defeat a seafarer’s statutory claims.
Grossly inadequate consideration	Court sets aside quitclaim; orders employer to pay full disability or death benefit plus legal interest (6 % p.a.) from date of filing.
Signed on board or immediately upon disembarkation	Presumed coerced; employer must show clear proof otherwise.
Blank spaces or “fill-in-the-blanks” template	Violation of Notarial Rule IV § 2(b); notary may be suspended and affidavit disregarded.

10. Sample boiler-plate (skeleton only)

AFFIDAVIT OF CLOSURE AND QUITCLAIM
(Seaman’s Fund Claim)

I, JUAN D. DELA CRUZ, Filipino, of legal age, married, and residing at …, after having been duly sworn, depose and state:

1. THAT I served as Able-Bodied Seaman on board M/T “PACIFIC WIND” under POEA Contract No. …  
2. THAT on 14 March 2024 I suffered a right‐shoulder rotator cuff tear and was medically repatriated on 28 March 2024; …  
3. THAT after assessment, the company-designated physician graded my disability at Grade 10, entitling me to USD 26,470.00 under Section 32 of the POEA-SEC; …  
4. THAT this date I received from OCEANIC MANNING, INC. the total amount of Philippine Peso equivalent of **US$ 26,470.00** by BPI Manager’s Cheque No. 123456; …  
5. THAT in consideration thereof I hereby RELEASE, DISCHARGE and FOREVER QUITCLAIM in favour of OCEANIC MANNING, INC. … provided that nothing herein shall prevent me from claiming benefits that are by law non-waivable; …  
6. THAT I executed this affidavit freely and voluntarily, without force, intimidation or undue influence, with the assistance of Atty. Maria Reyes (IBP OR No. …, 21 June 2025); …

IN WITNESS WHEREOF, I hereunto set my hand this 22 June 2025 in Manila, Philippines.

      (sgd.) JUAN D. DELA CRUZ
      Affiant
SUBSCRIBED AND SWORN…

11. Key take-aways for practitioners

Not just a receipt. Courts scrutinise the affidavit’s substance and the context of its execution; formality alone will not shield the employer.
Assisted settlement preferred. Whenever possible, channel the signing through NCMB or a Philippine consulate to create an official paper trail.
Consider progressive payment. If the disability grade is not final, pay an initial amount and sign a partial quitclaim; execute a final Affidavit of Closure only after the disability grade has become permanent and total/partial.
GDPR & Data Privacy Act. Include a brief consent clause for processing personal data related to the claim; this avoids future compliance issues.
Retain originals for ten (10) years. Limitation period plus buffer, in line with MARINA Circular 2017-05 (Record-keeping for manning agencies).

DISCLAIMER

This article is for educational purposes and is not a substitute for personalised legal advice. Maritime and labour rules evolve; always check the latest POEA-SEC version, DOLE issuances, and Supreme Court decisions before drafting or signing any Affidavit of Closure.