The Chhattisgarh government on Wednesday said it has blacklisted Oriental Insurance Company Limited (OICL) for three years for allegedly rejecting an insurance claim related to a government helicopter crash incident after keeping it pending for more than four years.
The state's Directorate of Aviation took the action in connection with the insurance claim for a government-owned AgustaWestland helicopter that crashed in May 2022, killing two pilots.
The claim was rejected by the insurer in August 2026, after it remained pending for more than four years, a government statement said.
A query sent to Oriental Insurance Company over the issue, however, remained unanswered.
On May 12, 2022, the helicopter crashed at 9.10 pm at Swami Vivekananda Airport in Raipur during a night practice sortie, killing senior pilot Captain Gopal Krishna Panda and DGCA examiner Captain A P Shrivastava, who had arrived from Delhi, it said.
The helicopter was insured with OICL and the insurance premium had been paid in full. An insurance claim was subsequently filed following the crash, but remained pending for an extended period before being rejected in August this year, the statement said.
The Directorate of Aviation subsequently examined the matter and issued a show-cause notice to the company, giving it an opportunity to present its position. OICL submitted its written response, it said.
After examining the available records and the company's response, the directorate passed a reasoned order and decided to blacklist OICL for three years, it added.
"This is a matter concerning public property. After the insurance premium had been paid, the time taken to settle the claim was a serious concern for the government. Service providers working with government institutions are expected to act in a timely and accountable manner," the statement said.
"Delays in matters concerning public assets can have financial implications for the government, and appropriate action can be taken under the applicable rules," it said.
The blacklisting, however, does not by itself bring the insurance claim to an end. The state government will pursue the matter through administrative and legal remedies available under the applicable rules, the statement said. The government will take necessary steps to safeguard the state's interests in the matter, according to it.
(With inputs from PTI)
