Which incident would incur a penalty of 25% of the lump sum payment?

The incident that incurs a penalty of 25% of the lump sum payment is violations against safety regulations. In the context of employee benefits or workers' compensation, if an employer fails to adhere to safety regulations and this results in workplace injuries or fatalities, both the employer and potentially the injured employees can face significant penalties and repercussions. The financial implications can extend to lump-sum payments, where non-compliance with safety standards leads to increased costs imposed by regulatory bodies to deter such violations and ensure compliance with safety norms.

In contrast, the other options represent circumstances that may lead to benefits or compensation without penalties in the same way. For instance, death of an employee typically triggers survivor benefits rather than penalties. Similarly, permanent total disability can lead to compensation relevant to the disability, and a claim filing past the deadline might affect eligibility rather than incur a direct penalty related to the lump sum. Understanding these distinctions highlights the critical importance of safety compliance in the workplace.