Hit by uninsured motorist, led to emergency C-section

After 38 weeks of normal pregnancy, my wife was in an accident with a hit & run uninsured motorist. The police later found the vehicle and owner, who claimed someone else was driving.

Tolerable damage done to the car, we paid the deductible out of pocket. Insurer has other party on a payment plan and will pay us once the full amount has been repaid.

More importantly, the accident forced my wife to the triage center at the hospital for observation. After 6 hours of observation, whe was induced & admitted. Another 20+ hours of labor, etc. later, a C-section was done to introduce a healthy, albeit small baby to the world. She was 4 lbs. 15 oz.

We have asked about a UMBI claim. Our insurer has informed us that their medical board does not see a causal relationship between the accident and the birth, though has offered 2k for stress & anxiety.

We don't agree with the conclusion and are looking to understand next steps. We have 100/300/100 coverage. Can we counter the proposal rather than going to court? What happens? What's a reasonable figure, we've read 8k and up.

Any help is appreciated.