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@s785
Well done - you've handled it very smartly, most people wouldn't after a knock on the head.
I think your plan is reasonable if you think it was a simple accident, kind of thing that might happen to anyone - we do not check shoulders etc 100% of the time and while the law might try to hold you to account every time you made a mistake, that would be a pretty shitty world.
However, if you think it's symptomatic of a general poor driving attitude and or carelessness towards cyclists it may be worth pushing for a harder punishment as deterrent. BUT from what you've said.. I think get the money for any damage, new clothes etc. And hopefully he will learn from it..