Usually worker compensation gets reimbursed when a third party is responsible for injury or death. The family of the dead employee will get money from the vehicle insurance and possibly the dealership if they can prove negligence. The car owners insurance will fight the case on his behalf.
It is my understanding that workman’s comp protects businesses from employee lawsuits. If you accept workman’s comp you can’t sue, if you sue you loose workman’s comp. The family of the deceased wants it both ways. I doubt a judge will allow this suit to go forward.