Word opening in Client Application in SharePoint document library when feature is not activated in manage features in site collection

Hello, I wish for all Word documents to open in the browser for my SharePoint document library on my team site.

The feature 'open in client application' is not activated in Features for the site collection and the setting in the document library is set on 'Use the server default (open in the browser)

When I select File > new> from the ribbon in the document library - it still opens Word in the client application?

Any ideas on this?

Is there a general Office 365 setting over riding SharePoint somewhere?

Regards

kegan1