“Underinsured motorist” means an owner or operator of a vehicle who is legally liable for the injury or death of an insured but is unable, when the injury or death occurs, to pay the full amount of damages recoverable by the insured or his personal representative in respect of the injury or death.

Underinsured Motorist Protection (UMP) is part of Basic Autoplan and protects in a crash where the at-fault driver does not have enough coverage to pay for your costs. You are covered up to $1 million from your own policy, even if the other driver has no insurance at all.

If you are injured in an accident caused by an individual with limited or no insurance, British Columbia has a statutory program in place which allows compensation regardless of no insurance or limited insurance. This program is called underinsured motorist protection (UMP). Payment under UMP is by ICBC.

The other common situation where UMP coverage applies is where the at-fault vehicle does not have any insurance.

UMP coverage is considered coverage as last resort.

According to the agreement Underinsured Motorist Protection cases are arbitrated through the Vancouver International Arbitration Centre (VanIAC) and unless the parties to an arbitration otherwise agree, the rules of the VanIAC for the conduct of domestic commercial arbitrations will apply.