Third party insurance liability

I injured a person in an accident for which a case was registered for rash and negligence driving. After 2 trials i admitted my mistake and was fined and case was closed. after some days i got a summon from motor vehicle tribunal that injured party has filed a petition for claim against insurance company and owner. My lawyer is filing counters to that petition and dragging that since last 5 years. He is filing the counters as no case was registered and everything is false etc. i dont know why he is giving false counters.when i asked him he is saying that the petitioner will come for compromise. But what is the need for compromise as i already have insurance. Do insurance will pay the claim in compromise also? Even if injured party doesnt come for compromise then at last any how everthing will be proved that it was my mistake, then who will pay the claim amount and the interest which will get arised due to all this? Insurance company ? or tribunal will order me to pay the amount as my lawyer dragged the petition by giving false counters?