What does it mean when the Outline of Coverage says "Functional Capacity" is lost.

Loss of functional capacity typically refers to a decline or impairment in an individual's ability to perform activities of daily living (ADLs) or instrumental activities of daily living (IADLs) due to injury, illness, or disability. ADLs include basic self-care tasks such as bathing, dressing, eating, toileting, and transferring (e.g., moving from bed to chair), while IADLs encompass more complex tasks such as cooking, managing finances, shopping, and using transportation. This must be determined by a licensed physician.