In British Columbia Underinsured motorist protection (“UMP”) is a statutory form of first party insurance offered by ICBC to provide indemnity to an insured person in the event that an at-fault motorist has insufficient or no liability insurance or other assets with which to pay a judgment.
With respect to any anticipated Underinsured Motorist Protection, UMP, claim, without a court award, the law provides that the determination as to whether an insured with UMP coverage is entitled to compensation and, if so, the amount of such compensation, is either to be made by agreement with ICBC or, if there is a dispute, submitted to arbitration.
Ump coverage of $1 million is mandatory for all BC insured drivers and anothet $1 million can be purchased as an option.
Talk to a personal injury lawyer of you believe that the person responsible for your injury does not have enough insurance to cover your loss. Take a moment to watch our short video about making and ICBC UMP claim after a car accident.
The law requires ICBC to reduce the amount payable as UMP compensation by the sum of the application deductible amounts. The law defines “deductable amounts” as follows:
“deductible amount” means an amount
(a) payable by the corporation under section 20 or 24 of the Act, or recoverable by the insured from a similar fund in the jurisdiction in which the accident occurs,
(b) payable under section 148,
(c) payable under Part 7 or as accident benefits under another plan of automobile insurance similar to Part 7,
(d) paid directly by the underinsured motorist as damages,
(e) payable from a cash deposit or bond given in place of proof of financial responsibility,
(f) to which the insured is entitled under the Workers Compensation Act or a similar law of the jurisdiction in which the accident occurs,
(f.1) to which the insured is entitled under the Employment Insurance Act (Canada),
(f.2) to which the insured is entitled under the Canada Pension Plan,
(g) payable to the insured under a certificate, policy or plan of insurance providing third party legal liability indemnity to the underinsured motorist,
(h) payable under a policy of insurance issued under the Insurance Act or a similar law of another jurisdiction providing underinsured motorist protection for the same occurrence for which underinsured motorist protection is provided under this section, or
(i) payable to the insured under any benefit or right or claim to indemnity.
It is important to understand that all expenses of preparing and going the trial will be deducted from the benefits under the Insurance (Motor Vehicle) Act. To understand more speak to one of our personal injury lawyers.