Liability of the owner of vehicle used in an accident by his driver

My nephew, a hired driver of a family, has injured an 11 years old boy accidentally at about 830pm last Sept 30,2015. He was detained together with the car. The owner refused to settle with the victim's family insinuating he has no responsibilty and the driver has the sole responsibility as he was paying for his services. The owner hired a lawyer for them to get the car and told the driver's family that their atty confirmed they have no responsibility. How true is this? On the first day of the accident, we told them to coordinate with the vehicle's insurance. Until now they are silent about it. For you advise and comment pls

Addl info...
They were on their way to airport when the accident occured. Mynephew was charged reckless imprudence resulting to serious physical injury. The boy is now ok and will be discharged on monday atGordon's hospital in Olongapo

If your nephew cannot pay the civil liability, his employer is subsidiarily liable.

Thanks for the reply. He has no ability to pay. We just raised the bail fee of 12k. His mother in law gave 20k for the hospitalization of the boy. Until now the owner of the car is silent on the insurance claim