File an FIR, possibly the insurance will not pay on his behalf considering he was violating multiple traffic rules at the time of accident but 2 lakh is a huge sum let them sell the bike put anything they have on mortgage take loans and recover the amount.
Had it been an accident where the person was not violating rules then you could have shown some mercy but in this case he was a violator.
Also don’t take anyone’s word as fact most probably they are lying.