Helicopter crash claim stayed pending for 4 years: Chhattisgarh blacklists Oriental Insurance

The Chhattisgarh government has blacklisted Oriental Insurance Company Limited (OICL) for three years over the rejection of an insurance claim linked to a government helicopter that crashed in 2022.

The state government's Directorate of Aviation took the action after the claim remained pending for more than four years before being rejected by the insurer in August 2026, according to a government statement.

The government said the helicopter was insured with OICL and the insurance premium had been paid in full. An insurance claim was filed after the crash but remained pending for an extended period.

The Directorate of Aviation later issued a show-cause notice to OICL and gave the company an opportunity to present its position. OICL submitted a written response. After examining the available records and the company's response, the directorate passed a reasoned order and decided to blacklist the insurer for three years.

Why the government took action

The state government said the delay in settling the claim was a serious concern because it involved public property.

"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," it said. "Service providers working with government institutions are expected to act in a timely and accountable manner."

The government said delays involving public assets could have financial implications for the government and that appropriate action could be taken under applicable rules.

The blacklisting does not, however, end the insurance claim. The government said it would pursue the matter through administrative and legal remedies available under the applicable rules and take necessary steps to safeguard the state's interests.

What OICL said

OICL rejected the government's decision and said it had handled the claim according to the policy terms.

"We, at Oriental Insurance Co Ltd, are very disappointed at this unjust decision on the part of Directorate of Aviation, Government of Chhattisgarh," the company said in a statement.

OICL said its decision was based on the documents available on file, including the detailed report of the Aircraft Accident Investigation Bureau (AAIB) under the Ministry of Civil Aviation, an independent surveyor's report and the recommendations on the inadmissibility of the claim.

The insurer said the reported delay was caused by the late submission of the AAIB report. It also cited the Directorate of Aviation's late response to letters from the surveyor seeking comments on observations in the report.

OICL, a Government of India undertaking, said it had also responded in detail to the show-cause notice and participated in the subsequent personal hearing conducted by the directorate.

"The directorate's action is unjustified and the unfortunate decision will deprive the Chhattisgarh government of the services of the Government of India-owned Public Sector Insurer and also lead to reduced competition in upcoming government tenders in Chhattisgarh," the company said.

OICL also pointed to its previous relationship with the Chhattisgarh government. It said it had been one of the state's trusted insurers and had provided services including the settlement of Personal Accident claims worth ₹1 crore each for the deaths of the two crew members in the same 2022 crash.

The 2022 helicopter crash

The government-owned AgustaWestland helicopter crashed at 9:10 pm on May 12, 2022, at Swami Vivekananda Airport in Raipur during a night practice sortie.

Senior pilot Captain Gopal Krishna Panda and DGCA examiner Captain A P Shrivastava, who had arrived from Delhi, were killed in the crash.

(With inputs from PTI)