As news of the "imminent" Swine flu pandemic grips people around the world, travel agents have cancelled holiday packages to Mexico and several flights to the country have been cancelled.

Mexico being the source of the Swine flu outbreak, has seen the number of holiday goers fall, as well as the global pandemic level being raised to five, one level below the highest.

The Foreign Office is now warning consumers to avoid non-essential travel to Mexico - meaning holidaymakers should be able to claim cancelled trips on their travel insurance.

Travel insurance customers have been issued new advice on trips to Mexico following a change in policy from the Foreign Office. This comes after cases of the flu have been confirmed in many countries around the world, including New Zealand, the United States, England and Spain.

Nick Starling, director of general insurance and health at the Association of British Insurers said: "If the government advises against travelling to a particular country or region, check your travel policy, as some may cover cancellation costs in these circumstances, although policies vary."

Mr Starling added that if people decide to take a holiday elsewhere, then "travel insurance policies will usually cover the new destination".