Setion 196 MV Act 1988 "punishable with imprisonment which may extend to three months, or with fine which may extend to one thousand rupees, or with both"
I think your friend is primarily at fault of driving uninsured vehicle so difficult for him to prove his innocense at the same time extremely difficult to prove the involvement of the other vehicle and its fault. Hence, compensation under section 166 not advisable.
He can try under section 140 - intrim, no fault.
In one of the MVC case the court has asked insurer to litigate a matter where driver/owner provided the medical aid to the victim. Remark -> it is unfortunate if the person provided medical aid has been asked pay the compensation. Insurance companies get enough premium to fight the cases.
It is unfortunate but true in India that people dont stop and provide medical aid just because they have to undergo complicated legal cases, both criminal and MACT. This must be changed.