Insurance underwriters have won a preliminary battle with Rolls Royce over who will pick up the bill for problems with the “mermaid pod” propulsion system fitted to a substantial number of cruise ships.



Underwriters led by Royal & SunAlliance are refusing to pay substantial compensation to Rolls Royce under a general liability policy with at least $100m at risk.

An exploded view showing the electric drive motor of a mermaid propulsion pod.

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