Subrogation includes propriety rights

The owner of British ship, totally lost after a collision with Canadian warship, was indemnified by the insurers for a total loss. Some years later, the owners, with the consent of the insurers, succeeded in recovering considerably more from Canadian Government that the indemnity originally paid by the insurers, because of an advantageous change in the rate of exchange. The insurers claimed they were entitled to the full amount under subrogation, but the court ruled that, under the principle of indemnity, they were only entitled to the same amount as they had paid out originally.