It's not the fraude that causes people to drive terribly. There has been a lot of insurance fraud, that's why you get a good discount on the contract if you install a dashcam.
Problem is that the driving tests in Russia are hardly up to par. People have money, buy a big car and suddenly think they can drive, which they can't. A red light doesn't mean anything for some people, neither does right of way.
Also the infrastructure is terrible. This is a good example of just how terrible it is.
The lack of driving skills and the lack of proper infrastructure is a recipe for crashes like that. Of course there is alcohol too. I had my brand new BMW Z4 wrecked when I was driving home from work at night. My light got green, accelerate and some drunk old fool in a Lada jumps the red light and crashed into the passenger side of my cute little car. Dashcam was my rescue.