Chhattisgarh blacklists Oriental Insurance for three years over delayed Helicopter claim
On Tuesday, the Chhattisgarh government announced that it has blacklisted The Oriental Insurance Company Limited (OICL) for three years for allegedly failing to settle an insurance claim for a helicopter owned by the state government just after more than four years.
The case relates to a government helicopter which crashed at Raipur airport in May 2022. This helicopter had been covered by Oriental insurance and the state government had paid their insurance premiums in full. The accident led the government to file an insurance claim with the company.
The Chhattisgarh government said the claim had been pending for over four years during which time the insurance company made no decision on it. The Directorate of Aviation sent its report and decided that it was not in the interest of government that a claim having to do with public property was held up for so long as this.
The helicopter had been owned by the public, and the cost of buying it and insuring it was public funds, officials said. The government pointed out that it would be concerning for public resources if such a claim was left unresolved for a number of years.
The government acted after they had adhered to the rule of law and the principles of natural justice. Oriental Insurance received a show cause notice and its written response. The company had also been afforded the chance of holding a personal hearing.
On the basis of the analysis of the response submitted by the company, available records and other facts, the Directorate of Aviation gave out an order containing a reasoned text and placed the insurer on a blacklist for three years.
The government said it does not shut the insurance claim itself, however. The seizure process to recover all of what is due to the state for the claim will continue, Authorities said.
The decision serves as a reminder to service providers of what the Government expects to be done by them in line with the contractual obligations set in a reasonable timeline, officials said. The government further emphasized the need to abstain from delays as routine administrative procedures when it comes to public interests and public monies.