Imagine you are in Mumbai. The weather is all nice and bright. You leave from office early, with a firm belief that your car will take you home safely. Suddenly, your car has a flat tyre. You think it will be a matter of minutes as you have a Stepney. But lady luck isn’t in a good mood and it starts raining cats and dogs (in Mumbai, you just cannot tell) and your engine gets filled with water and suffers damages, now this is consequential damage.
Also, this is one of the biggest confusions people have, your engine damage, until and unless it happened at the same time an accident happens, is not covered under your basic comprehensive car insurance cover, you need an Engine Protection cover for it.
Your car meets with an accident on the road and stops moving. Now, it requires to be towed to the nearest garage. But the towing guys are not the softest ones out there, so if while towing your bonnet gets affected and there are scratches on it.
The damages due to towing would fall under consequential damage and will not be covered by your car insurance policy. So, the tip here is that be extra careful when the hook goes under your car.