The Word file is split into chapters and subchapters based on the built-in heading style of the Word document like Heading 1 and Heading 2 etc. along with the embedded images.
The initial version of the plugin was having some issues with images and .docx files created through Libre Office but it has been fixed promptly by Eoin.
In order to use this book tool you need to create a book and then under the Book Administration menu you will find the option to “Import chapters from Microsoft Word file“.
You can download the Microsoft Word file import from the Moodle Plugins database and test it on your Moodle site.
I believe that this can be a very useful tool to import MS Word files to your Moodle Book resource. What are your views about the same? How you are importing MS documents in your Moodle course? Let us know in the comments below.