equivalent value means the value of the phone when u bought it new.  e.g desire hd when new i bought RM2099, after 3 years if it spoiled and HTC doesn't has any spare parts left and it can't be repaired, SENQ will replace your desire HD with something similarly priced (at RM2099) at that time

Extracted from Sen Heng care plan policy.
All Risk Insurance Programme Terms & Conditions


PRODUCT
The All Risk Program only covers a Product which; -

    is purchased new from Senheng / senQ outlet.
    manufactured for domestic and personal use, and  must be kept in private dwelling  in Malaysia only.
LIMIT OF LIABILITY
The Insurer’s liability shall be limited to the amount paid for the price of each single item and/or shall not exceed the total purchase price as per Sales/Purchase Invoice.
TERMS OF COVER

    Fire & Lightning
    Flood
    Theft by forcible entry including damage during theft
    Accidental Damage
    Arm Robbery and Hold-up
BASIS OF SETTLEMENT
Upon approval of claim by the Insurer Senheng Electric (KL) Sdn Bhd (296691-X) shall undertake to Repair or Replace the Loss/Damage item similar to the original purchase item. However, if the similar item is not available or discontinued in the market, it shall be replaced with an item of equivalent specification or in value not exceeding the Market Price.