Section 3 in The Personal Injuries (Compensation Insurance) Scheme, 1972
3. Employer's obligations .-(1) Every employer shall take out in the manner indicated in this Scheme, a policy of insurance as laid down in section 9 and pay such advance premiums as may be notified under clause 8 and such final premium as may after the expiry of the period of the emergency be notified under clause 6.
(2)An employer who has fulfilled such of his obligations under sub-clause (1) as have fallen shall be entitled to have any liability for the payment of compensation incurred by him under the Act discharged on his behalf by the Government out of the fund.(3)Where an employer has failed to fulfil such of his obligations under sub--clause (1) as have fallen due any compensation for the payment of which he is liable under the Act shall be paid out of the Fund, but any amount so paid shall be capable of being recouped from the employer in accordance with the procedure provided in that behalf in the Act.
