I know the EU law making motorist at fault for accidents with cyclists sounds wacky. But it may make policy sense.

I assume that motorists are required to have insurance. Few cyclists have insurance. Serious accidents involving cyclists are rare. Having the motorist's insurance policy cover the damages is almost certainly pretty cheap and maybe it is even cheaper in the long run then figuring out who is at fault and who is liable. We are talking about civil liability here and not about anything else. Civil liability can be counter intuitive.