Oriental Insurance blacklisted for three years over delay in settling state helicopter insurance claim

Raipur, October 7, 2026/ The Chhattisgarh government has blacklisted The Oriental Insurance Company Ltd (OICL) for three years for keeping an insurance claim related to the state government’s helicopter pending for more than four years before rejecting it in August 2026.

The action was 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, it filed an insurance claim, which remained pending for more than four years before being rejected by the company in August 2026.

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The Directorate of Aviation, after examining the matter, found an excessive delay in settling the claim and considered the company’s handling of the case unsatisfactory. The government viewed the matter with particular seriousness as it involved public property and funds.

Officials said the helicopter was public property and its purchase and insurance involved public money. They said service providers working with the government are required to fulfil their contractual obligations within the stipulated time.

Company given full opportunity to respond before action

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Before taking action, the government issued a show-cause notice to Oriental Insurance and gave it an opportunity to submit a written response and appear for a personal hearing. After considering the company’s response and examining the available facts and records, the Directorate of Aviation passed a reasoned order to blacklist the company for three years.

Officials said delays in settling public claims can affect the government’s financial interests and cannot be treated as a routine administrative matter.

State to continue efforts to recover insurance claim amount

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The blacklisting does not affect the state government’s efforts to recover the insurance claim amount. The government will continue to pursue the matter and take necessary steps to recover the amount due, officials said. They added that the government would take all required measures to protect public funds and safeguard the state’s financial interests.