"Lens on" is not a known problem, so are you referring to lens "cap"?
It should be said if this applies then it could be either the CCD image sensor that has gone faulty, or a problem with the mode selection switch, or another possible is a bad connection on a ribbon cable that runs under the top of the casing that connects the CCD.
It should be said that it certainly isn't connected with the well known and documented "lens cap" problem that did apply to a certain range of models, your model not being one of them.