The devil is in the details - consequential damage

This should actually get into my BMW ownership log: http://www.team-bhp.com/forum/test-d...ml#post2598064 But this whole "consequential damage" concept freaked me out so much that I felt deserves a topic of its own. As can be seen from the above thread, my 520D went over a stone, which cracked the transmission oil pan at the bottom. The transmission died in 'Park' mode and the car could not be budged. They tried to drag the car onto the two truck and I am not sure what else they did to get the car on the tow truck. (Btw, the car died at around 5:30am and they were able to get the car on tow truck at around 10pm!!) Luckily I have the BMW-Secure which is some kind of top-up insurance. So full damage of approx 7.75 lakhs is covered. Today I called the insurance person to casually check how much was covered by regular insurance and how much was covered by Secure. He told me that since the accident only resulted in oil-leakage and oil-pan-damage very little was covered by insurance and the actual transmission (which is ~90% of the damage) replacement is covered by Secure as it is considered "consequential damage". I couldn't ask further details because I nearly fainted. Since I am fully covered one way or the other maybe the issue is not such a serious one in my case. But I am shocked to learn that there is such a clause called "consequential damage" and it looks like insurance has lot of scope for foul play. How to protect oneself against any denial of claims due to this "consequential damage" thingy?

URL: