Indemnity Value is an insurance term meaning that your belongings are depreciated due to wear, tear and age, which is fairly standard on travel policies. Your belongings are covered for accidental damage, loss or theft, but it doesn't cover the fact your laptop may get a software error and need to be repaired, and it also doesn't cover items which you don’t take care of. So never check in your fancy laptop into the hold on aircraft or buses, and don't leave your belongings in the open and unattended where they may, no will (!), get stolen, as you will find any claim will probably be denied.
Our claims service has guidelines of the amount of depreciation that will be applied to baggage claims, which you can read by clicking