Ok so remember my bike got hit and everyone was saying The police wouldn't do nothing well here is the final outcome lmao
I've just re-read your original post on this, if you have been given a courtesy bike then someone has admitted liability. You have all her details, you gave these to your insurance, they chased it, they got a result, hence the courtesy bike. Police wont prosecute because in effect she has given her details so no further action is required on their part. It would seem that they haven't followed this up properly, i.e. getting in contact with your insurance or you, to ascertain persons responsible, which i don't suppose they would do anyway. Hence the letter.
That's my this was sent before everything was sorted iv just only put it on here that's all just sharing