In skinned mesh components (skeletal mesh component is derived from this component) they are used to get the bone name.
Look for this code in CharacterMovementComponent.cpp:11150
FName BoneName = NAME_None;
if (OtherBodyIndex != INDEX_NONE)
{
BoneName = ((USkinnedMeshComponent*)OtherComp)->GetBoneName(OtherBodyIndex);
}
If the OtherComp is a USkinnedMeshComponent
the body index refers to the bone index.