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Many NI businesses forced to close over coronavirus feel they are being "shafted" by insurance firms refusing to pay out on policies designed to compensate them.

The claim was made during a Stormont economy committee meeting.

Some traders who believed they were entitled to claim under business interruption insurance are having their claims rejected.

Evidence was given by Alastair Ross, of the Association of British Insurers.

Some MLAs said constituents had contacted them expressing anger and disappointment at the behaviour of insurance companies dealing with claims and it appeared firms were "exploiting ambiguity" in the wording of policies.

Mr Ross said the Financial Conduct Authority (FCA) was currently looking at the issue, and there was a test case being heard in the High Court in London which would hopefully lead to clarity.

However, he said the overwhelming majority of businesses had not taken out additional cover to insure against a pandemic.

Those who have taken out infectious disease cover have found that this only relates to a disease being on their particular premises, not to a general pandemic, the committee was told.

"I appreciate that is a difficult message for businesses to hear, but that is the situation that we are in - that business interruption insurance is a specific product line," said Mr Ross.

However, Ulster Unionist MLA John Stewart said it was a case of "the insurance companies coming out on top as usual".

"No-one likes claiming on their insurance, given the costs and only when it's really vital, but the one time it's needed they are going to be shafted - and that's the way it feels, to be quite honest," he said.

DUP MLA Gordon Dunne said there was "a lot of disappointment, a lot of anger, annoyance out there among businesses" who thought they were covered, only to find their claims rejected.

"It's most disappointing and unfortunate, but I suppose to the ordinary man in the street, it's not unusual from insurers," he said.

Mr Ross insisted the insurance industry was working with businesses and regulators to resolve the issues, and was happy to speak with companies which had contacted the committee members.

He said any businesses which had taken out cover which included pandemics should be getting paid out as quickly as possible.