ToME: the Tales of Maj'Eyal

Hey! ToME Newb here, though certainly no stranger to Roguelikes. I need help understanding the "When Wearer is hit" attribute of equipable items.

On the face of it, it seems to indicate that, if I were to wield this lantern with the "When Wearer is hit: 10 fire" (example) attribute it means:
1) Monster deals damage to my character
2) Character takes monster damage + damage from the item

Is that correct? I've never seen such a thing in a roguelike before, and if I'm right I can't imagine anyone ever using such a thing unless the positive aspects of the item FARRRRR outweigh the negatives. I suppose I just need to hear it from someone else.

Does any of this make sense?

I read it as whatever hits you takes the damage? Though I can't say with authority either way.

These types of items deal the specified damage to whatever monster hit you.

Even if the damage was blocked good for shield based classes.

I am pretty sure it's only melee enemies that receive the damage though. (But I may be wrong)

Thanks everyone!