This cannot be what insurance is about

My engaged ring got lost. I had it insurance with dial direct. When I proceeded the claim I was told that their supplier(not the jeweler i got my ring from) has valued my ring for a value less than what the ring is worth and for a value less then what I have insured it for. They then told me that this supplier will make the ring scratch as a replacement.

I then inform them that the exact same ring is still available from my jeweler and that i will be more comfortable if we get it straight from them. I was then told that if a pay out is to be made to me it will be for almost half of what I insured my ring for and not even close to what the ring is worth.

This is not insurance