The mishap occurred near near Kokri village in the district. While Usha Devi (45), her daughter Puja Raikwar (19) and her nephew Shreshth (5) died on the spot, the driver and another occupant of the car sustained injuries, City Superintendent of Police SR Dandotiya said.
The injured were rushed to a hospital, he said, adding the victims were on their way to Barwani district from Bhopal when they met with the accident.
The bodies have been handed over to the family members, Dandotiya said adding the victims hailed from Bhopal.
"We have booked the driver under section 304 A of the IPC (deaths due to negligence) and investigations are on," said the official.