What is the difference between a permanent disability and a temporary disability?

In Russell v. Bankers Life Co. (1975) 46 Cal.App.3d 405, 415--416, 120 Cal.Rptr. 627, 633, the court stated: 'There are two basic classifications of Workmen's Compensation disability benefits: temporary and permanent. Each type of benefit is designed to compensate for a different type of loss. 'permanent disability is distinct from temporary. The primary element in temporary disability is the loss of wages, whereas loss of earning power is not a prerequisite to the right to permanent disability; permanent body impairment is the prime consideration in determining right to permanent disability.' (Citations) In other words, temporary [54 Cal.App.3d 686] disability payments are a substitute for lost wages (citation) during the temporary disability period, while permanent disability is for permanent bodily impairment and is designed to indemnify for the insured employee's impairment of future earning capacity or 'diminished ability to compete in the open labor market.' (Citations) Thus permanent disability is not based solely on loss of wages, but is based on actual incapacity to perform the tasks usually encountered in one's employment, and on physical impairment of the body that may or may not be incapacitating.'