I can't speak for the UK, but in The Netherlands the driver is virtually always considered to be at fault - except extremely rare ones where the driver could not have possibly anticipated and/or avoided it. To give an example, hitting a child who suddenly runs onto the road is the driver's fault, as children are well-known to be unpredictable and do stupid things.

But no, insurance fraud like that does not really exist here, probably because there is nothing to gain from it. We don't do multi-million-dollar lawsuits for things like emotional damage, and liability is just a thing between your insurance and theirs.