MLchartDataset catalogue

"Damages reduction" provision

Term · Insurance and risk management · MLC-T-INS-001071

An underinsured motorists provision under which the insurer deducts the amount the at-fault driver's liability insurer paid from the insured's total damages, then pays the remainder up to the UIM limit. Under this approach combined recovery from both insurers may exceed the UIM limit. It contrasts with a limits reduction provision, which subtracts the at-fault driver's payment from the UIM limit itself.

Table 1. Record
IdentifierMLC-T-INS-001071
FieldInsurance and risk management
SubjectPersonal Lines
Record as JSON 
{
  "id": "MLC-T-INS-001071",
  "term": "\"Damages reduction\" provision",
  "field": "Insurance and risk management",
  "definition": "An underinsured motorists provision under which the insurer deducts the amount the at-fault driver's liability insurer paid from the insured's total damages, then pays the remainder up to the UIM limit. Under this approach combined recovery from both insurers may exceed the UIM limit. It contrasts with a limits reduction provision, which subtracts the at-fault driver's payment from the UIM limit itself.",
  "subject": "Personal Lines",
  "url": "https://mlchart.com/terminology/insurance/damages-reduction-provision/"
}

Record 879 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.