Legal Process in Case of a Car Accident in India

Suppose a car owner, having valid driving license and not drunk, accidentally hits another person with their car. The car owner does not flee and decides to aid the injured. The injured person claims to have hurt their knee but refuses first aid or to go to the nearest hospital with the car owner. Instead, they demand and decide to go to a hospital of their choice with their companion. They refuse to communicate with the car owner but take a photograph of the car owner's driving license and 2 days later demand 3-4 lakhs for hospital bills. Note that the car is insured. Now I have some questions in this regard - How long does the injured person have to file an FIR against the car owner? - What are the potential punishments and penalties for the car owner if the injured person is hurt? And are claiming that they had to get a knee surgery? - Can the car owner be arrested in this situation? - What is the legal process that the car owner must undergo in this case? - What steps can the car owner take to protect themselves legally in this situation?