Oriental Insurance Blacklisted for Three Years Over Delay in State Helicopter Claim

Representational image illustrating the insurance dispute involving the Chhattisgarh government helicopter. The Directorate of Aviation has blacklisted The Oriental Insurance Company Ltd for three years over the delay in dealing with the insurance claim relating to the helicopter that crashed at Raipur airport in May 2022.

Aviation Directorate acts after insurance claim linked to May 2022 helicopter crash remained unresolved for more than four years

Key Highlights

• The Oriental Insurance Company Ltd (OICL) blacklisted for three years by Chhattisgarh’s Directorate of Aviation.
• Action relates to an insurance claim concerning the state government helicopter that crashed at Raipur airport in May 2022.
• Government says the claim remained pending for more than four years before being rejected in August 2026.
• Company was issued a show-cause notice and provided an opportunity for a written response and personal hearing.
• Blacklisting will not prevent the state from continuing its efforts to recover the insurance claim amount.

The Chhattisgarh government has blacklisted The Oriental Insurance Company Ltd (OICL) for three years over what it termed an excessive delay in dealing with an insurance claim concerning the state government’s helicopter.

The action has been taken by the Directorate of Aviation in connection with the helicopter that crashed at Raipur airport in May 2022.

The state government had insured the helicopter with Oriental Insurance and paid the prescribed premium in full. Following the accident, an insurance claim was lodged with the company.

According to the state government, the claim remained pending for more than four years before Oriental Insurance rejected it in August 2026.

After examining the matter, the Directorate of Aviation found the time taken to deal with the claim excessive and considered the company’s handling of the case unsatisfactory.

The government has taken a serious view of the matter because the helicopter constituted public property and both its purchase and insurance involved public funds. Officials maintained that companies and service providers dealing with government assets are expected to discharge their contractual responsibilities within the stipulated period.

Company Given Opportunity to Present Its Case

Before imposing the blacklisting, the government issued a show-cause notice to Oriental Insurance and allowed the company to submit its written response.

The insurer was also provided an opportunity for a personal hearing.

The Directorate of Aviation subsequently examined the company’s response along with the available facts and records before issuing a reasoned order blacklisting OICL for three years.

Officials said prolonged delays in deciding claims involving government property could affect the state’s financial interests and therefore could not be regarded merely as a routine administrative issue.

State to Pursue Recovery of Claim Amount

The three-year blacklisting does not bring the state government’s insurance claim to an end.

The government will continue to pursue recovery of the amount claimed under the helicopter’s insurance policy and take further steps considered necessary to protect public funds and the state’s financial interests, officials said.