I'm not sure what you wanted to know?
Obviously I will have no way of knowing what the other party will do?
What is the cost of the damage?
That comes down to the discretion of your insurance company.
Their actions hitherto suggest they will dishonour the claim I'm afraid. They are entitled to do that. If you didn't have a licence they are not entitled to say your insurance is invalidated.
Sometimes they will not.
Generally speaking it depends upon how loyal you have been to them and the level of the damage.
If it is low level damage then I would be doing all you can to settle it privately.
Sorry if that is bad news.
Can I clarify anything for you?
Probably they will claim from the MIB but then they will claim from you.
You want to avoid that at all costs. Costs will be large.
Just settle privately.
Yes, they could.
They cannot get them from the MIB so they could sue you personally.
I realise that you may not have the money but you will end up paying anyway because the MIB take no prisoners so it is better to try to settle it before costs are applied.