Embodiments of the present disclosure relate to a coiled-tubing system, a coiled tubing inspection tool and methods for using same. The system comprises coiled tubing that is wound about a coiled tubing reel and a coiled tubing injector head that is connected to an oil-and-gas well above a pressurized zone. The coiled-tubing system also includes the inspection tool that is connected to the well within the pressurized zone. The inspection tool is configured to generate a magnetic field and to detect changes in the magnetic field as a section of coiled tubing approaches, moves through and moves away from the inspection tool. Detecting changes in the magnetic field may be indicative of a damaged section of the coiled tubing.
