How do I get past the Asylum's electrified keypad?

Solution 1:

Watching this video as a guide, you need to get the fire axe to break open the one side of the structure that contains the hand. Take the hand, and use that to type on the keypad.

At around 11:30, he breaks the glass using the axe, then at about 12:00, he uses the hand to type on the keypad.

You apparently lose the fire ax after breaking the glass.

This Guide also states the same.

Leave the room through the other exit and go forwards. The control panel next to the door looks a bit dodgy; you need something to insulate you from the short circuit. Walk round the room and examine the results of Sartorius' experiments. When you find the arm, smash the glass using the axe and pick up the arm. Go back to the locked door and use the arm to press the buttons. Climb the ladder into the laboratory.

The axe is apparently found in room with a collection of books after taking an elevator up. Bit difficult to tell exactly where it is since not much is available on the game, but you may know where it is or have it already having played the game. The guide describes it as so:

You are in another elevator so take it up. In this room are a collection of books, letters and displays. The book on the left as you enter has an important clue. Find the model of the Asylum, click on the base and the top opens. On the bed is a box containing an axe that you will need later.