The sad story of the woman possibly paralysed in a horse-riding accident in Egypt could hardly illustrate better the need to be insured when you travel abroad, especially to more exotic parts.

Olivia Fairclough, 31, was flown back to the UK last week only thanks to an online fundraising page created by her brother Trevor, 28, which raised an astonishing £32,500 in a fortnight.

Ms Fairclough was not on holiday, she had been working in Cairo for 14 months, latterly with horses which were her passion. Her travel insurance had lapsed, so she was uninsured for medical expenses when disaster struck.

But this year, almost one in five British holidaymakers are planning to travel to a country they've never been to before, according to ABTA.

The report, compiled in association with the Foreign & Commonwealth Office, identified 12 destinations expected to capture the public’s imagination in 2016 including Abu Dhabi, China, Hawaii, Iran, Peru and Sri Lanka.

Easy online booking, and the need to avoid traditional holiday hotspots now under a terrorism shadow such as Egypt, Tunisia and Turkey, are prompting many to seek more exotic and far-flung destinations.

Intrepid travellers need to plan ahead and be sure they know not only what insurance they need, but how to make sure any claim would be valid.

Alex Edwards from Gocompare.com Travel Insurance commented:

“It is crucial tourists understand and respect the local traditions, customs, laws of the country they are visiting to ensure they don’t cause offence or act illegally. Otherwise, the penalties can be severe.

“Travel insurance, which covers medical expenses, lost baggage and documents, cancellation and delays is also a must for any trip abroad. But, insurers will expect you to take care of yourself and your possessions and, not behave recklessly or illegally. So, for example, if you’re heading to an area which has life-threatening infectious diseases you need to make sure you have the right vaccinations. Otherwise, if you fall ill with a disease for which you haven’t been vaccinated against or taken the required medicine - your insurance may not cover your medical treatment.”

Easy use of cash machines or travellers cheques cannot be taken for granted further afield. Although most travel policies cover the accidental loss of, theft of or damage to personal money and documents (such as a passport or driving licence, cover limits, excesses and exclusions vary considerably. Cash cover is typically £200 to £500, but conditions may include keeping it safely on your person or in a locked safe. There will also be stipulations regarding the reporting of any losses. “So, if you need to travel with a large amount of cash, you need to make sure you buy a travel policy which has the appropriate cover,” Mr Edwards says.

Travel insurance won’t cover claims for medical treatment as a result of a pre-existing condition you’ve failed to declare or treatment for diseases which you forgot to get vaccinated against. So when applying for insurance be honest about any health problems you have. Travel insurers also typically exclude claims made as a result of excessive alcohol consumption, reckless behaviour and taking part in activities they deem ‘hazardous’.

While almost all policies provide some cover for leisure activities, which can include banana boating, horse riding, parasailing, cycling or white-water rafting. But the number and types of activities covered varies widely between policies.

Mr Edwards says: “If you’re planning any leisure activities when abroad, you should read your travel insurance terms and conditions to make sure you’re covered and ensure you comply with any safety rules. For example, some policies may only cover activities, such as scuba diving, if they are organised from the UK.”

For European travel you should have an up to date EHIC card, which should be obtained free from the government website, not from rogue sites which charge fees. But its cover is limited and is not a substitute for full insurance.

The website’s own customer data shows that more than half holidaymakers who bought their travel policy less than a week before heading off, including nine per cent who left it until the day of departure.

Only 16per cent of last year’s travel insurance policies were bought more than a month ahead of the trip.

Yet according to figures from the Association of British Insurers, around a third of travel insurance claims made by UK holidaymakers are for costs related to cancellations with an average claim value of around £700. This is second only to the average medical costs claim of £900.

Insurers will only consider claims if they are prompted by events travellers could not have known about before buying their insurance. So the sooner you buy the policy, the more likely it is you’ll be covered if something happens between booking and departure date.