Depends on if you mean LiF:MMO or LiF:YO.
LiF:YO is server based, kinda like Minecraft. If the server has a NO-PVP rule, then you just report it to the server admins I guess.
LiF:MMO is different, from what I read the starting/central city and surrounding area will be a no PVP zone.
Also one thing that everyone that asks this question seem to forget, is that you don't have to kill people to rob them of their stuff. But if you do kill them, the alignment system is pretty unforgiving to you.
So if you were to be attacked on the lonely road by bandits, you can yield and they take what you have of value. But why would they take your newbie items?
Also the combat system will be something like Mount&Blade, so your level won't change much more than the weapons and armor you can use.
A group of newbie should be able to swam an average player.
This thread already has a good long talk about full-loot:
full-loot-t1640/