Four persons were killed and 40 got injured Saturday when their bus hit a roadside tree near village Kauli, 15 km from Patiala, police said.
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The mishap took place when the bus, which was coming from Chandigarh, in a bid to overtake another vehicle, swerved and hit the tree, they said.
The five injured are stated to be in critical condition and have been admitted to a local hospital, police said.
Punjab chief minister Parkash Singh Badal announced an ex-gratia amount of Rs 1 lakh each to the next of kin of the deceased and Rs 25,000 to the seriously injured.