The vehicle was on its way to Ramban town from Banihal when it skidded off the road and rolled down into the 800-ft deep gorge at Battery Chashma at around 3:45 PM, police said.
The mini-bus was packed with passengers, they said adding the army and police personnel rushed to the scene and launched rescue operations.
Some passengers were evacuated by IAF choppers, a defence spokesman said.
Ten people died instantly and three in GMC Hospital in Jammu, police said.
A driver who stopped his vehicle to see the mini-bus falling into the gorge also slipped into the ravine and died, police said.
Chief Minister Omar Abdullah expressed grief over the loss of lives and offered his condolences to the bereaved families.
He sanctioned a financial relief of Rs one lakh each to the next of kin of those killed and Rs 10,000 each for the injured who had been hospitalised, officials said.
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