Section 53. Release from liability

An employer securing the payment of
  compensation by contributing premiums to the state  fund  shall  thereby
  become  relieved  from  all  liability  for  personal  injuries or death
  sustained by his employees, and the  persons  entitled  to  compensation
  under  this  chapter shall have recourse therefor only to the state fund
  and not to the employer.  An employer shall not  otherwise  be  relieved
  from the liability for compensation prescribed by this chapter except by
  the  payment thereof by himself or his insurance carrier. The provisions
  of this section shall not apply to the state of New York, as an employer
  except to the extent that the fund has provided insurance coverage on an
  actuarially sound basis to the  state  pursuant  to  the  provisions  of
  section  eighty-eight-c of this chapter. To the extent that the fund has
  not provided insurance coverage on an actuarially sound  basis  pursuant
  to  section  eighty-eight-c of this chapter, any state employee or other
  person entitled to compensation under this chapter as a  consequence  of
  personal  injuries  or  death  of  a  state  employee  shall have direct
  recourse therefor only to the state.