In the accident, five infants, who were also travelling in the bus, had miraculous escape and were unhurt, they said.
The ill-fated bus was on its way from Chai ke Dohra to Sundernagar when it fell into a gorge, the police said, adding the cause of the accident was yet to be ascertained.
There were about 40 passengers in the bus including women and children.
The injured people were rushed to a hospital at Sundernagar and the district administration has given immediate relief of Rs 20,000 to kin of the deceased, Rs 10,000 to seriously injured people and Rs 5000 to those who sustained minor injuries, the police said.