The new rules would allow for refunds of 25 percent per ticket for a delay of 60 minutes, and anyone stuck for more than 120 minutes would be reimbursed for half of their ticket price, according to Dortmund daily newspaper Ruhr Nachrichten on Friday.
The paper reported that the German Justice Ministry was likely to submit the draft legislation for approval by the cabinet by the end of the month.
The legislation would also allow passengers delayed for more than 20 minutes on regional trains to switch to long-distance trains, which often cover similar routes but are more expensive. The paper reported that nighttime train delays longer than 60 minutes would be compensated by either covering taxi costs of up to 50 kilometres or a hotel stay.
The legislation would also require railway operators such as Deutsche Bahn to offer refreshments for delays longer than 60 minutes, and travellers would get a full refund for any delays over an hour if they decided to forgo their trip.
The Justice Ministry reportedly expects up to 9.5 million train travellers to make use of the new compensation rules each year.