What is DEDUCTION FOR NEW?

In marine insurance. An allowance or drawback credited to
the insurers on the cost of repairing a vessel for damage arising from the perils of the
sea insured against. This allowance is usually one-third, and is made on the theory that
the parts restored with new materials are better, in that proportion than they were
before the damage.

More On This Topic



Link to This Definition
Did you find this definition of DEDUCTION FOR NEW helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary