- Travel insurance: how to get a better deal

The recent unrest in India and Thailand has highlighted the problems faced by travellers when confronted with unexpected events.

If are thinking of travelling to Mumbai or Bangkok or other troubled areas it is important to check the Foreign Office Commonwealth website (www.fco.gov.uk) for up to date information.

If you have planned a package holiday to either of these countries, it is advised that you do not take the trip at this time. Customers who have booked but have yet to travel would normally be offered a full refund or an alternative holiday of a similar standard elsewhere. This is not always effortless, and some operators are more helpful than others, but, legally, if a tour operator cancels your holiday, for whatever reason, you must be offered a full refund.

If the Foreign Office does not advise against travel but counsels only caution, you have no legal right to cancel without penalty. Tour operators refer to this as "disinclination to travel", and they are within their rights to impose the cancellation penalties in the small print. Some operators may be more flexible and offer alternative destinations, but they are not obliged to.

If you have booked independently (i.e. paid for a separate airline ticket) and decide you don’t want to travel during such a period of uncertainty, you may be able to alter your departure date, and perhaps the route you are flying. But with some tickets you may forfeit your money if you decide to cancel. Check with the airline, or travel agent that issued the ticket, what the terms and conditions are.

From an insurance point of view of these, travellers should try and follow certain guidelines in order to ensure they are taking the right financial precautions.

If you are already in one of these countries, call your travel insurer directly to establish what you are covered for. Costs such as extra accommodation other means of transport could well be covered by your policy. Unfortunately, most insurers do not provide cover for losses caused by terrorism but some insurance companies have said that they will look at claims on a case by case basis. Check with your insurer.

Remember to keep all receipts for any expenses needed for extra transport and accommodation as you may be able to claim back some of the costs if your airline fails to do this.

Airlines should reimburse passengers for cancelled flights and other means of transport to return home if the Foreign & Commonwealth Office advices against travel to that country, which it has for Both India and Thailand. However, make sure you speak to your travel insurance company to see how they can help you.

Anybody planning to travel to these or any destination in the near future should shop around using comparison sites for travel insurance that covers a maximum of risks, including terrorist attacks, in an exotic destination.