Underinsured Motorist Protection (UMP)

Underinsured Motorist Protection is insurance that you purchase for yourself to compensate you for damages inflicted by another driver who is insufficiently insured.  All BC vehicles have $1,000,000 in basic UMP coverage, and you have the option to purchase additional coverage.

Who is covered by UMP?

You are covered by UMP if you:  (1) are named on an owner’s certificate of an ICBC insured vehicle; (2) you are a BC resident with a valid BC driver’s licence; (3) you are a passenger in an ICBC insured vehicle; (4) you live with someone who has an ICBC insured vehicle.

Deductions

UMP coverage is reduced by any other available benefits, including:  ICBC no-fault benefits, any damages paid by other drivers, EI benefits, WCB benefits and private insurance.  If you have $1,000,000 in UMP coverage, your claim is limited to $1,000,000 (under UMP).  That limit is also reduced by any deductible payment.  If you received $200,000 as settlement from the other driver, another $150,000 in no-fault benefits and another $50,000 in EI and private benefits, your UMP coverage for additional damages is reduced to $600,000.

Accidents Outside of BC

UMP coverage extends to accidents outside of BC.  In fact, this is one of the most important considerations when deciding whether to purchase additioanl UMP – if you travel outside BC, other drivers may not have as much coverage (basic coverage levels are often lower outside BC), and if you are injured in the United States, you may be liable for medical care that can quickly add up to hundreds of thousands of dollars.

Judgement against Underinsured Motorist

You are technically required to enforce any claim against the underinsured motorist before you can claim under UMP.  Sometimes ICBC waives this requirement, but not always.  If they do not, you would have to obtain a judgement against that motorist and take steps to collect on the judgement.