Indemnity is the principle of compensating a covered financial loss rather than creating a profit from that loss. It commonly applies to property and liability insurance, subject to limits, deductibles, and valuation terms. A fixed life insurance benefit does not work in the same way because human life is not valued by repair costs.
If insured equipment in Nepal suffers damage, payment may reflect repair cost, depreciation, or replacement cost according to the contract. The sum insured is a ceiling rather than an automatic payout. Keep purchase records and evidence of damage to support the amount of loss claimed.