I don't know - that's my honest answer to this. If I drive, not paying proper attention, into a petrol pump I'd expect my insurance company to pay the garage for all loses suffered - and then sting me for the next few years on my premiums lol
In another example, my wife has a horse and third party insurance so if her horse causes damage then the insurance will pay out. An example could be the horse kicking a car and causing damage. This could be argued as being criminal damage, especially if there is no one in the car at the time and someone sees that my wife is not in complete control of her horse! Hypothetical, but possible and hopefully it won't be a reality.
Re the part of your post that I haven't quoted, I'm in full agreement with that - especially the common sense of which many people are sadly lacking these days!
And I don't want to get into an argument with the first part because, as I say, I don't know but surely that's the point of insurance?