The assured is impliedly bound to mitigate the loss suffered by the insurer

A collision occurred between a British vessel and Canadian warship, Diplock J analysed the whole doctrine of subrogation. The judge confirmed that the limit recoverable by an insurer by way of subrogation was the value of indemnity, and that there was an implied term in a contract of insurance that an assured was, whenever it was in his power, duty bound to reduce the amount of the loss indemnified by the insurer.