Title says it all, really.
Ribbat Surcoat: When you take damage, lose Teffra and heal back some of the damage taken (20% healed for 2 Teffra)
Quetzi Waist Guard: Whenever you gain a power, upgrade it and take damage (100 damage per power)
The damage from the waist guards does activate things like the Righteous Fury power, so it's probably just an oversight with how the Surcoat views damage and how the Waist Guards damage you.
(While I have the dev's attention, I don't think I need to make a separate post for this, but the Ribbat Surcoat also doesn't heal back any damage from Cannon overcharged skills (so, using them with too much ammo). I was taking around 21 damage so the surcoat should heal for 4 hp, right?)
Equip both items, take a power while you have Teffra, and see that you don't get healed.
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