It will cost Independent Insurance's creditors 2% of the value of their loss to join the class action against groups involved in the insurer's collapse.

The Creditors of Independent Insurance Group (CIIG) met on Monday to set the rate and form a committee, which will instruct the group's solicitors Class Law, led by partner Stephen Alexander.

Committee chairman Kevin Young said the meeting had been productive.

It was decided creditors must contribute 2% of the value of their loss to join the action, up to £500,000, after which the contribution will be 1%. There will be a minimum contribution of £50, except for Indie employees, for whom the minimum will be £25. Claims over £1m will be individually assessed.

Young said if the initial feasibility study by Class Action showed the action was not viable, all monies would be returned to creditors, minus any legal costs incurred to that point.

The CIIG will write to all of Independent's creditors this week to invite them to join the action.