You are using a web browser or a browser version not supported by this website! I can't tell you if it's valid but the collision is definitely being detected with these settings. Reproduction in whole or in part is prohibited. Contact is also one of the most frequently misunderstood areas of analysis. A Contact Set definition gives you latitude to ignore these areas. The one exception to this is that shell mesh automatically created from SolidWorks sheet metal will automatically bond to solids, provided the sheet metal part is touching the solid. AUS NZ
So you don't need to use self contact or split the body like I originally suggested.
Global Contacts in SOLIDWORKS Simulation