meaning of "damages reduction" provision

"damages reduction" provision meaning in Insurance Dictionary

A term utilized in reference to uninsured and underinsured motorists (UM/UIM) coverage to refer to restrict of insurance coverage conditions that implement (in some states) to set down how UM/UIM coverage is impacted because of the presence of other kinds of coverage (age.g., automobile medical repayments, employees compensation) that may use aswell. Under problems reduction, any quantity payable for damages underneath the coverage is paid down by all sums compensated under another kind of coverage, as specified when you look at the appropriate UM/UIM recommendation.