Are there such situation(s) that can cause a camera (can be a point and shoot camera or a DSLR Lens) Lens to lose its image stabilization ability?
If you're talking about lenses permanently losing their stabilisation ability this could be due to any of the following factors
- failure of the switch which activates IS
- faults of the motion detection sensors
- failure of the control system
- failure of the IS motors
- jamming of the IS lens elements
which in turn may be the results of
- manufacturing defects
- physical shocks to the lens
- moisture or water damage
I'm no lens doctor, but a good ol' drop on the floor might do it.
I assume the optical IS function that is built into lenses is micro-gyro based, not image movement based, and so may be affected by a strong magnetic field.
Also, dirty contacts can cause all sorts of errors.