The Chhattisgarh government has blacklisted Oriental Insurance Company (OICL) for three years after the insurer rejected a claim linked to the crash of a government helicopter. The state’s Directorate of Aviation took the action after the claim remained pending for more than four years before being rejected in August 2026, according to a government statement. The insurer did not respond to a query regarding the matter.

The government-owned AgustaWestland helicopter crashed at 9.10 pm on May 12, 2022, during a night practice sortie at Swami Vivekananda Airport in Raipur. The accident killed senior pilot Captain Gopal Krishna Panda and Directorate General of Civil Aviation examiner Captain A P Shrivastava, who had travelled from Delhi.

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 unresolved for an extended period before the insurer rejected it in August this year. The Directorate of Aviation subsequently examined the matter and issued a show-cause notice, allowing the company to present its position. OICL submitted a written response.

After reviewing the available records and the insurer’s response, the directorate passed a reasoned order and imposed the three-year blacklisting. The government said the delay raised serious concerns because the matter involved public property and could have financial implications for the state. It added that service providers working with government institutions were expected to act in a timely and accountable manner.

The blacklisting does not itself end the insurance claim. The state government will pursue administrative and legal remedies available under the applicable rules and take further steps to protect its interests, the statement said. The action prevents OICL from participating in relevant government engagements during the specified period, while the dispute over the rejected claim remains subject to the next steps taken by the state.