Event
During a sightseeing flight, the pilot observed an engine chip light. He initiated a precautionary landing from a cruise altitude of 1,500 ft MSL. Upon reaching 500 ft AGL, a total loss of engine power occurred. The pilot then initiated an autorotative descent toward a road. Seconds prior to touchdown, a tour bus obstructed the approach path, causing the pilot to alter his course. The subsequent hard landing resulted in the tail boom being severed.
Examination
Examination of the engine revealed that the #8 bearing failed because of a lack of lubrication.
Background
Hours before the accident flight, the operator had observed that the engine was leaking oil. The operator continued to utilize the helicopter in air taxi service without performing any recorded maintenance.