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How does permanent disability is decided : term insurance plan

Hi,

How does the permanent disability is decided by insurance company? I along with my friends had a long discussion on this item and we were really not able to conclude. 

Example situation :

If some one gets into eye injury/disease where he/she losts both the eyes or gets a partial vision due to some nerve injury. With this he/she might not be able to work.

Will this be considered as Permanent disability?

This is just an example. Would be great, if you can share your knowledge on the permanent disability evaluation procedure.

 

Thanks,

Dinesh

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