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Usually, when Players hurt NPC, they would be penalized. However, there were many times, especially in the story of quests in the world of the game where NPC were evil villains, in such case, NPC would be branded as "Bandit" or even "Monsters" and be allowed to be exterminated if they threatened a Player.
As of now, despite being a human, Jeremias was obviously evil and has killed Lily three times already. It was more than obvious he was a foe, and therefore, a red brand appeared above his head, which only Lily could see…
[Bandit: Can be exterminated to receive a reward.]
The System seemed to not be biased towards NPC, if they dared to become villainous and threaten Players, with all the rights they had to hurt others, then Players would also acquire the rights to hurt them back.
Check "The Protagnist's Sister Is Actually the Strongest"!