47 year old Kenny Lush was killed in May 2009 cycling home from work on the A414 between Hatfield and Hertford.
Lush was struck by motorist Deborah Hearn, who fled the scene. Later she handed herself in and pleaded guilty to causing the death of the father of four by careless driving.
Hearn avoided a jail sentence in March 2010 as she was then heavily pregnant. Instead she was banned from driving for 18 months and ordered to pay £2,500 costs.
Since then the CTC and Slater & Gordon solicitors have worked with Lush's family resulting in what has been called the highest ever sum of damages for a claim for fatal injury through CTC's insurance scheme.
Kenny Lush's mother Karin Lush said: “No amount of money can ever bring my son back. We have lost a son, husband, father and brother and we don’t feel the driver responsible for killing him has been held accountable in any way. She will probably have no idea how much we have gone through and how our family have suffered financially as a result of her actions that night.
"She killed him and drove off; there is no way we will ever get over that but it is some relief to know that his family and children will be looked after and have some degree of security even if they don’t have a father.”
CTC chief executive Gordon Seabright added: "There are no winners in this tragic story, but CTC are pleased that our partners at Slater & Gordon Lawyers have been able to secure this settlement for the family of Kenny Lush. Our work to win justice for cyclists in the face of scandalous sentencing has never been so important as now."
An annual race has also been set up in Kenny’s memory as he was an active and long standing member of the cycling community.
Liz Dux, lawyer from Slater & Gordon said: “I hope the significant settlement brings some sort of closure for the family and allows them to have some security for the future but nothing can bring Kenny back.
"Through representing the family since Kenny’s tragic death, I have got to know them very well. I have seen what a tremendous presence he was to the business and how hard it has been for them to keep the family firm going.
"The most upsetting aspect of this case were the actions of the motorist. The family just cannot reconcile their suffering to her lenient sentence. As a society we have still got the balance all wrong. Hopefully this settlement will go some small way towards lessening the pain for the family.”