To plead guilty or contest

Sir A speeding biker hit my car and fell on the road receiving simple injuries in the form of bruises on fore arm and hand. I myself took him to the hospital got first aid and X- ray of arm done,paid expenses and he was sent home to rest for a day as it was simple injuries only. He lodged FIR against me. He has red 41000/- from insurance and is asking for two lakhs from me saying he has sustained brain injury and can't work so I shd compensate. My dilemma - despite he driving rash and hitting, me not leaving him on the road but getting him first aid, I am being held accused. I was neither rash nor negligent causing injury and running away. Queries - 1-His medical says Simple injuries- now can he submit new medical after almost two years 2- Shd I plead guilty 3- He is asking for 2 lakhs though he has red 41 thousand from insurance 4- if one asks for mediation as Section 337 as it is compound able then what about section 279 Do I have to plead guilty for it and pay fine or contest it How to go about it. My lawyer says pay fine under 279, go for mediation for 337 and pay them whatever amount he is asking.God knows my lawyer is to help me or the other party. Please guide I am a senior citizen ,pretty disturbed and don't know how to come out of it. Thanks n waiting for early reply Mrs Anil Prabha