I don’t think we need to get into the weeds on this. The amount the insurer will pay to the OC will be based on their insurance cover, which may well include an excess. The amount the OC owes the lot owner is based on the OC’s liability. If there is an excess in play, the OC needs to make up the shortfall to the lot owner.
In short, the amount the insurer pays the OC and the amount the OC pays the lot owner will differ by the amount of the excess.
Misunderstandings often arise in these issues when the strata committee thinks they only owe the lot owner what the insurer paid to them. This is not the case – they have to cover their liability. If they disagree with the lot owner’s assessment of the damages, then they have to thrash that out between them.