new-for-oldadv.adj.
/ˌnjuːfəˈ(r)əʊld/, U.S. /ˈn(j)ufərˈoʊld/ Insurance.
A. adv.
In marine insurance: with regard to deducting that which an insurer is entitled to deduct on account of replacing old material with new when making repairs.The ‘customary deduction’ is up to one-third the cost of repairs, however, in practice, the right to such a deduction is usually waived.
ΚΠ
1789 C. Durnford & E. H. East Rep. Cases King's Bench 2 411 The principal..is the one third for repairs, new for old.
1802 in W. Johnson N.Y. Rep. (1812) 3 183 The principal question raised..was whether, in estimating the expense of the repairs..one third was to be deducted, as new for old.
1822 Rep. Federal Cases (U.S.) (1895) 19 113/2 Is it to be the actual cost of the repairs, or the actual cost, deducting one-third new for old? In other words, is it the supposed damage to the ship estimated in the ordinary way, or by the actual loss on cost to the owner.
1860 New Amer. Cycl. IX. 555/1 For it is one of the practical rules to which merchants have come, that in every case of partial loss, one third shall be allowed as the benefit conferred by the new materials of repair; or, in the common phrase, ‘one third off, new for old’.
1869 T. Parsons Laws of Business 419 There is no rule in fire-insurance similar to that which makes a deduction, in marine-insurance, of one-third, new for old.
1953 Cases U.S. Court of Claims 123 663 It would have cost, in 1945, $13,725 to restore the vessel to 1942 condition, and that two-thirds of the restoration cost should be allowed as new-for-old.
1962 R. H. Brown Dict. Marine Insurance Terms 194 In practice, this right is waived and the insurer agrees to make no deductions ‘new for old’.
B. adj.
1. In marine insurance: relating to or designating a type of deduction that an insurer is entitled to make on account of replacing old material with new when making repairs. Cf. sense A.
ΚΠ
1844 W. Moody & F. Robinson Rep. Cases Nisi Prius II. 49 Consequently the underwriters were not entitled to a new-for-old deduction of one-third.
1962 R. H. Brown Dict. Marine Insurance Terms 194 The practice of the insurer with regard to waiving ‘new for old’ deductions does not affect the allowances made in a general average adjustment.
1994 Lloyd's List (Nexis) 25 Nov. 11 Also, the deductible under the IYC [sc. Institute Yacht Clauses] involves a straight new-for-old deduction of up to one-third from claims in respect of covers, sails, running, rigging and outboard motors–and it is applied before considering the policy excess.
2. Relating to or designating a type of insurance policy which undertakes to meet the cost of replacing the insured article with a new item of similar type, without a deduction for wear and tear.
ΘΚΠ
society > trade and finance > financial dealings > insurance > [adjective] > insurance policy types
tontine1790
whole-life1832
term1834
floating1839
all risks1885
third party1901
non-profit1905
knock for knock1906
stamped1913
warehouse to warehouse1922
without-profit(s)1924
with-profit(s)1924
loaded1928
unit-linked1966
no-fault1967
new-for-old1984
critical illness1986
1982 N.Y. Times (Nexis) 8 May ii. 30/1 ‘You get new for old,’ says Harry Phillips of H. & R. Phillips Inc., a property and casualty brokerage firm in New York.]
1984 Which? Jan. 3/1 They may also have persuaded you to swap to a new-for-old policy, and they've probably index-linked the amount you're insured for.
1990 Daily Tel. (Nexis) 27 Oct. 29 The cover is on a new for old basis and accidental damage cover can be added.
1998 Independent (Electronic ed.) 10 Aug. Your household insurance, if it is a policy which gives new for old cover, can probably be extended to cover travel.
This is a new entry (OED Third Edition, September 2003; most recently modified version published online March 2022).
<
adv.adj.1789