A study which was carried out by an independent research company found that the number of holiday insurance policies which are now available has risen by almost 10% despite the fact that travel to overseas destinations has fallen drastically.

1,018 travel insurance policies are currently on offer, when 12 months earlier there were  just 930. 50% of the new travel insurance policies were introduced by five of the biggest national insurance companies.

As the country slumped deeper into the economic recession last year, more and more people cut back on non-essential spending, which included holidays for many. For this reason, a huge percentage of people chose to not take a holiday abroad last year, with many opting for the cheaper option of the stay-cation which involves holidaying in the UK.

According to recent statistics, overseas travel decreased by 16% during 2009. However travel agents and insurance companies are hoping to recoup some of the losses from last year as thousands of Brits prepare to leave the country to support England in the football World Cup which is being held in South Africa.

New research has shown that some families are putting themselves at risk by travelling abroad without ensuring that their travel insurance policy adequately covers any dependents who may be travelling with them. Should an uninsured child fall ill while abroad, the family could be hit with huge medical costs.

The independent research company which carried out the study discovered that there are a number of grey areas concerning insurance cover for families. The research found that the definition of a “family” in the case of some insurance companies needs revising in order to be up to date with modern life.

Most insurance companies will cover a child who lives at the same address as the policyholder. However if the child lives at a different address to that of the parent with whom they are travelling, which is often the case if the mother and father have split up, then the child will not be covered under many insurance policies.

Another issue which could lead to families travelling abroad without adequate travel insurance is that almost half of the insurers involved in the research don’t cover children which travel to a destination independently, even if they live at the same address as the policy holder.

The advice being given by the research company is to clarify with your chosen insurer to ensure your children are fully covered before leaving the country.