Virgin starts automatic compensation for train delays

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Virgin has become the first train company to automatically compensate some passengers if they are delayed.

From Saturday 3 October, travellers using its services on the West Coast mainline - and who book their tickets via the company app or website - will receive automatic repayments.

The government urged other train operators to follow suit.

The idea follows the announcement that delayed passengers now have the right to compensation in cash.

Until this summer, all compensation was paid in vouchers.

"Our plan is to make sure passengers across the country benefit from schemes like this, and we are encouraging other operators to roll out similar schemes nationwide," said Transport Secretary Patrick McLoughlin.

Reluctance to claim

Virgin train passengers who are delayed will receive compensation back on to the card they used for the purchase.

But they will only be able to get compensation if:

However, Virgin said that it expected to pay out an extra £2.8m in compensation in the first year of the new system.

At least 3.5m journeys will qualify for possible claims, the company said. Passengers who do not qualify for automatic compensation can still apply in the normal way.

But previous research has shown that most passengers do not bother to claim compensation, even when it is due.

In 2013, the passenger group Transport Focus said that 88% of those delayed did not apply.

Refund levels

The compensation will be on the basis of "Delay Repay", which is offered by around half of all train operators.

Individual train companies offer different levels of compensation, but the best deals - including Virgin's - involve:

It is thought that at least one other train operator is now considering offering automatic refunds.