As for whether you need to file a lawsuit if the other party refuses to compensate after the workplace injury is recognized... definitely not.
Article 41 of the "Social Insurance Law" stipulates: If the employer fails to pay workers' compensation insurance premiums according to law and a workplace injury occurs, the employer shall be responsible for the workers' compensation benefits. If the employer fails to pay, the workers' compensation insurance fund shall advance the payment.
In other words, if the employer refuses to pay, the workers' compensation insurance fund will cover it first, and then the fund will recover the costs from the employer.
As for how they recover the costs, that's their business. Article 63 of the "Social Insurance Law" also has provisions on this, and it is certainly much more effective than if you were trying to demand it yourself.
