Negotiation with the Insurance Company:
Upon receiving your relative's response, the insurance company may assess the situation and decide to negotiate a settlement directly with him. Given his limited income and lack of insurance, they might understand that pursuing legal action against him could be unfruitful and opt for a settlement amount that both parties can agree upon.
Legal Action:
If the insurance company believes that your relative is liable for the damages and that pursuing legal action would be worthwhile, they could decide to take him to court. In court, they would seek compensation for the damages incurred by their client (the driver), which could include repair costs for the vehicle, medical expenses if the driver sustained any injuries, and possibly other damages.
Your relative's admission of liability to the police could be used against him in court, as it indicates his acknowledgment of responsibility for the accident. However, without insurance or significant assets, the likelihood of the insurance company successfully recovering the full amount awarded by the court may be low.
Judgment and Enforcement:
If the court rules in favor of the insurance company and orders your relative to pay damages, but he is unable to do so, the court may issue a judgment against him. This judgment would be a legal obligation to pay the specified amount.
In cases where the defendant lacks the means to pay the judgment voluntarily, the court may explore various enforcement mechanisms to compel payment. These can include wage garnishment, seizing assets, or arranging for a payment plan based on his income.