Road traffic accident

A car was hired on Zoomcar( self driven cars for hire) by four students who were traveling from place A to B during the weekend, one of the student was driving( with valid drivers license) the car was hired by another student using his valid license, the car met with an accident wherein a person traveling on high speed on a motorcycle from opposite side without helmet got injured, the car stopped immediately, the police arrived & the students helped to evacuate the injured motorcyclist to hospital & car to police station, the students were not intoxicated or arrested, the police did not carry out any check for intoxication as it was apparent, the injured is serious & in hospital, his family has not filed an FIR till now Q1 If the family files a case who is liable to pay compensation the student driver, the student who hired the car or the insurance company( since third party insurance is mandatory in india now)? Q2 if the injured suffers disability the case for compensation will be filed against whom? Q3 How does case affect the employment prospects of these students ( all are above 18 now & seek employment within two years) Q4 Can the students be arrested if & when it becomes a case under 304A? Q5 Can the case be settled out of Court even if death occurs?