Rohit:
Expenditure reimbursement & compensation is to be paid as per EC Act, as mentioned by Mr.Kutty rightly.
It does not matter how small or large your organisation is or whether it is making profit or not, etc.
The law is very simple in this case, as the accident has happened in the course of work, entire medical expenditure is to be borne by the company. Furtther, his leave of absence due to accident should be paid days.
On your part, u can educate him about his rights under the EC Act & also suitably advise your management about the pitfalls of not paying the compensation by showing the necessary clauses, as the seniors may not know the exact provisions of EC Act & the penalties.
Rgds
Dixon
Tata Trent, Pune