Garmin Watch insured at R3400 but Outsurance replacing it at R2100.

I logged a claim on 24 Jan 2023 with reference number ***. for my Garmin watch which was no longer charging. Outsurance send their Service Provider for collecting and assessment. The assessment was done and the watch needed to be replaced.

On 30 Jan 2023 I received a call from Claims Advisor indicating that the Garmin watch will be replaced at a value of R2100. I asked her how is that possible as the insurance policy which I am paying for indicated that the Watch is insured at the value of R3400. I was given an explanation by the Claim Advisor and her Line Manager which does not make sense. Why is Outsurance not replacing the insure watch at the R3400 but R2100?

I have been with Outsurance for more than ten years with few claims and this is how they are treating their customer? Please expect my letter to cancel my insurance covers in few days.