The police were wrong Boona. You could still have sued him privately for negligence. The fact that he was not insured is not relevant to liability. However whether he would have had the money to pay up would have been a completely different matter.
Not about speeding but when I was about 10, more years ago then I remember, I was out on my bike and took a short cut through down a no cycling alley and on reaching the end I crashed into the local station sergeant. It cost 10/- for riding on the pavement and 10/-damages to the sergeants uniform, plus the biggest thrashing from my dad I'd ever had. In those days a pound was a lot of money
Not sure on the legalities in the UK, however in Germany any traffic offence gets you points and a fine no matter what you are riding or driving. Quite a few squaddies get caught out by it, thinking they will be fine to cycle home after a few pints and then getting stopped by the police.
Thankfully it is usually only a 28 day ban and fine but it makes them think more about their actions.