PLT OF AN SMT TWIN ACCIDENTALLY COLLAPSED THE NOSE GEAR DURING TAXI WHEN RISING THE GEAR HANDLE TO THE UP; INSTEAD OF THE NEUTRAL POS.

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I AM ENCLOSING A COPY OF MY DESCRIPTION OF THE INCIDENT THAT WAS SENT TO THE INSURANCE COMPANY AND THE FAA. IN ADDITION TO WHAT WAS SUBMITTED I WOULD LIKE TO ADD THAT I HAVE NEVER BEFORE CLOSED THE GEAR DOORS; BUT I HAVE OPENED THEM SEVERAL TIMES FOR MECHS AND THAT WAS WHY I WRONGLY SELECTED THE UP NEUTRAL POS. IT WAS NOT THE RIGHT THING TO DO; BUT I ALSO WRONGLY THOUGHT I WAS PROTECTED BY THE SQUAT SWITCHES. AFTER 29 YRS AS A PLT AND OVER 15000 HRS OF FLT TIME WITH 0 ACCIDENTS AND 0 INCIDENTS; I DON'T THINK IT WOULD BE FAIR TO PAY FOR MY FIRST ERROR IN JUDGEMENT. ON MAY/XX/96; I WAS ASSIGNED TO FLY A PA31- 350 NAVAJO CHIEFTAIN. AFTER MY SECOND FLT OF THE DAY; I GNDED THE ACFT BECAUSE OF AN OIL LEAK. DUE TO SEVERAL UNRELATED FACTS; I HAD TO WAIT UNTIL THIS ACFT WAS FIXED TO FLY MY LAST FLT OF THE DAY. THAT PUSHED MY DEP TIME BACK TO XX30 (1 HR LATE). AFTER THE OIL LEAK WAS FIXED AND THE ACFT WAS TESTED; I RECEIVED IT WITH THE FLAPS DOWN FULL AND THE GEAR DOORS OPEN. AFTER STARTING THE ENGS; LISTENING TO ATIS; AND CHANGING FREQS TO GND CTL; I ADDED PWR TO START TAXIING. I WAS WAITING TO CYCLE THE GEAR HANDLE AND BRING UP THE FLAPS TILL I COULD ADD SOME PWR AS TO NOT DRAIN THE BATTERY. WE TRY NOT TO IDLE THE ENGS TOO HIGH OR TOO LONG WHILE ACFT ARE TAILED TOWARD THE TERMINAL; AND MY PROP BLAST WAS DIRECTLY TOWARD THE TERMINAL DOOR. I GLANCED AT THE GEAR HANDLE AS I REACHED FOR IT; BUT THE SUN WAS IN MY FACE AND I DID NOT SEE IT CLRLY. I THOUGHT I SHOULD BRING IT UP TO THE NEUTRAL POS TO CLOSE THE GEAR DOORS. IT WAS ALREADY IN THAT POS AND WHEN I PULLED UP MORE; WHICH I SHOULD NOT HAVE BEEN ABLE TO DO; THE GEAR WARNING HORN AND LIGHT WENT ON AND THE NOSE GEAR COLLAPSED ALMOST SIMULTANEOUSLY.