One man is dead after the boat he was travelling in on Vancouver Island hit a wave and broke apart on Saturday, RCMP said.

A RCMP dive team called off a search for the 40-year-old man after finding a body at 10:35 a.m. on Sunday.

The man was with another passenger on Saturday afternoon in Sproat Lake -- about 100 kilometres west of Naniamo, B.C. -- when the hydro boat exploded, witnesses said.

"The boat's bow lifted up and it just wobbled a little bit like it hit some kind of wave or a wake," said Allan Pineo who witnessed the accident. "It just disintegrated."

Others heard an explosion nearby, saying it sounded like a bomb.

A father and daughter saw one of the male passengers in the water wearing his lifejacket, and were able to pull the 38-year-old into their boat, RCMP said.

He was taken to hospital with serious injuries, but is now in stable condition, said RCMP Cpl. Patrick Jenkins.

The RCMP said the father and daughter continued to search for the other missing man, but were unable to locate him.

Police searched the lake until about 8:30 p.m. on Saturday when they located the sunken vessel. They returned Sunday morning to recover the boat and search for the missing man, but later called off the search when they discovered a body matching his description.

An investigation is underway to find out why the boat broke apart, Jenkins said.

With files from CTV Vancouver Island