Someone is making a bogus claim against me

[Mike2016]

An ex-resident to where i live accused me from bumping into his car something that never happened. Only because i park close to his car. When i asked why he thinks it was me he said he saw it at the CCTV. We reviewed the CCTV cameras there was nothing there. Just me passing by and never touched his car. He still insisted. My insurance did not accept the claim and said there is no evidence against me but the other insurance is not letting the claim and they say is irrelevant that there is no evidence. I am not left with a situation that i can not get a renewal for any less that 2K and i lost my 22 years of no claim bonus. My current insurance says they will pay back the premium and re-instate my no claim bonus when the case closes but it can take up to 6 years. This is completely ridiculous. Is there nothing i can do to protect my self from all of this?

That's awful!
It is a shame you didn't protect your NCB I have no advice on what happens now, but re the NCB - I would speak to your insurance company about if there is any way they would allow you to pay the extra to protect it now based on old NCB built up, because if you have a genuine claim whilst this is being sorted, you will certainly lose it.

Can't you counter-sue for malicious claims?

Did you have legal cover under your own insurance? They should be fighting this on your behalf if you did. There is a way to ask for the court to expedite the matter so that it can be dismissed for lack of evidence.