road accident by a bike

One of my friend got road accident by his bike as one lady of 52 yrs old was crossing (divider) the one way road. She got minor leg injury and no other injury caused to her. My friend admitted her to Govt. Hospital and he was ready to pay all the expanses for her treatment. The lady is a sweeper in the Municipal Corporation on contract with 14,000 rs per month. my friend don't have a 3 rd party insurance of his bike he is a government servant. One of the relative of the lady is in Police and therefore she lodge FIR after three days. They asked huge amount of rs 1 Lakh as compensation through third person. My friend is unable to give such huge amount. Plz guide in this regard what we have to do.