PASSENGERS will automatically receive compensation if they are hit by delays on a major rail line.

The system, which has been introduced in the UK for the first time, will see Virgin Trains passengers travelling from Glasgow to London receive money directly on to their payment cards within three days if their journey is delayed by at least half an hour.

The scheme is available to people who buy Advance tickets through the operator's website or mobile app.

Virgin estimates that it will pay out an extra £2.8 million under the new scheme, which will operate on the West Cost Main line. It has been introduced because many people do not use the existing online claim form.

Some 5 per cent of trains run by the operator were either cancelled, late by more than 30 minutes or failed to make a scheduled stop in the 12 months to September 19, according to Network Rail figures.

Around 3.5 million journeys on the West Coast Main Line will fall under the terms of the Automatic Delay Repay (ADR) system each year and be eligible for compensation if delayed.

Derek Mackay, Scottish Government Minister for Transport and Islands, said: “It is good to see the latest technology being used to improve customer service and compensation for passengers.

"Virgin are setting a new benchmark but as a regular rail user, and Transport Minister, I hope delays and, therefore, payments are minimal.”

The rates of compensation in include 50 per cent of the of the cost of a single ticket or the relevant portion of a return ticket for delays of 30-59 minutes, a full refund of a single ticket for delays between one and two hours and a full refund of a single and the return ticket for longer waits.

Virgin policy states that it does not normally accept claims in cases where trains are delayed if the passenger was notified of the delay before they bought the ticket.

Mike Hewitson, head of policy at independent watchdog Transport Focus, said: "This is a great step forward and we would like to see this system introduced across all operators and ticket types."

Phil Whittingham, managing director of Virgin Trains, said: "We're proud of our record of customer service at Virgin Trains and are always looking for new ways to innovate for the benefit of customers."

UK Transport Secretary Patrick McLoughlin described the development as "fantastic news" and called for it to be rolled out nationwide.

He said: "Virgin Trains are making the most of modern technology to improve the service customers get.

"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."

ADR only applies for Advance tickets when a specific train has been booked.

A seat reservation is not enough and journeys with multiple connections across different operators are not eligible.

Delays for journeys not suitable for ADR can still be claimed for in the normal way.