The accident took place at around 8 AM near a private university in Kharar here, police said.
The Ludhiana-based family was going towards Chandigarh when their car rammed into a state roadways bus coming from the opposite direction, they said.
Four of the car occupants died on the spot, they added.
The car was badly damaged in the accident, police said, adding that it took quite an effort to retrieve the bodies.
The deceased were identified as Dalip Kumar, his wife Ranjana, their daughter Pooja and driver Harjit Singh, they said.
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