Strange behavior from his side..more like a farmaishi program. The thing about our society is that they will try to push us against a wall if we allow them to.
I wonder, the many times our car was hit by people. Our Cultus was only a week old, from factory zero meter, when a minibus slammed into the rear and almost wrecked the behind. The driver joined his hands and said 'saien ghareeban'. Then once near bhens colony a truck t-boned it on slow speed such that it's bumper split the 'chaddar' of the darwaza. We didn't get a penny out of these two cases.
And, in the minibus case our car was insured. It's his mistake for not insuring the car too, given the condition of our roads and how expensive his car is.
As for the damages, yes you should pay the bill but I don't think you are liable to accept his farmaishi program. Itna bhi bara dent nahi ke fender replace kerden.
