Chhattisgarh Govt blacklists this PSU insurer

New Delhi: The Chhattisgarh Government on Wednesday said it has blacklisted the 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.

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The OICL expressed disappointment over the Chhattisgarh government's "unjust" decision, and maintained that the company had followed the due process and decided on the claim strictly as per the policy terms and conditions. It also decided to "explore all avenues" and get the "decision reviewed in the interest of justice".

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.

The OICL said in a statement, "We, at Oriental Insurance Co Ltd, are very disappointed at this unjust decision on the part of Directorate of Aviation, Government of Chhattisgarh. OICL has followed the due process and decided on the claim strictly as per the policy terms and conditions, based on the available documents on file, including the detailed report by 'Aircraft Accident Investigation Bureau' under Ministry of Civil Aviation, Government of India, as well as the independent surveyor's report and the recommendations therein regarding inadmissibility of the claim."

The reported delay was caused due to the late submission of the AAIB report and also the directorate's late response to the surveyor's letters seeking their comments on the observations made in the AAIB report, it said.

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OICL, a Government of India undertaking, has acted strictly as per the terms and conditions of the policy and also responded in detail to the show-cause notice issued by the directorate as well as the subsequent personal hearing conducted by them, it said.

"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," it added.

"Incidentally, the OICL has been one of the trusted insurers for the Chhattisgarh government over the years and has provided excellent services always including settlement of Personal Accident claims worth Rs 1 crore each for the loss of life of the crew in the same accident in 2022. We shall explore all avenues and get this decision reviewed in the interest of justice," the company said.

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