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Business
Chhattisgarh government bans Oriental Insurance for three years over delayed helicopter claim settlement
✍️ The New Indian Express
🗓 07 Oct 2026, 08:02 PM
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The Chhattisgarh administration has placed Oriental Insurance on a three‑year blacklist after the insurer failed to settle a helicopter insurance claim in a timely manner.
The Chhattisgarh government announced on Monday that Oriental Insurance will be barred from participating in state‑run insurance tenders for the next three years. The decision follows a prolonged delay in settling a claim related to a helicopter accident, which the insurer was contractually obliged to process promptly.
Officials said the delayed settlement caused financial strain on the affected parties and violated the terms of the insurance agreement. The government’s procurement department cited the insurer’s non‑compliance as a breach of trust and a risk to public assets.
Under the new blacklist, Oriental Insurance will be ineligible to bid for any state‑sponsored insurance contracts until the end of 2027, unless it successfully appeals the order. The move is intended to reinforce accountability among private insurers serving government projects.
The state has urged other insurers to adhere strictly to claim‑settlement timelines, emphasizing that timely payouts are essential for the safety and operational continuity of government‑owned assets such as helicopters.
No comment was received from Oriental Insurance at the time of publication.
Officials said the delayed settlement caused financial strain on the affected parties and violated the terms of the insurance agreement. The government’s procurement department cited the insurer’s non‑compliance as a breach of trust and a risk to public assets.
Under the new blacklist, Oriental Insurance will be ineligible to bid for any state‑sponsored insurance contracts until the end of 2027, unless it successfully appeals the order. The move is intended to reinforce accountability among private insurers serving government projects.
The state has urged other insurers to adhere strictly to claim‑settlement timelines, emphasizing that timely payouts are essential for the safety and operational continuity of government‑owned assets such as helicopters.
No comment was received from Oriental Insurance at the time of publication.