He knows. And why are you accusing me of fraud? Do you know something that I dont know? Legally, I am just driving my dads car.
Of course you can drive his car with his permission, his company will not cover you without insurance.
If he has given you permission and he knows he is complicit in an illegal activity, if you have lied to him about it that would be considered fraud (in all likelihood) and his company would still hold him responsible.
Regardless, you are by all appearances using him in your illegal activity because as you say he is dying, and I personally find that disgusting.