"An over speeding truck hit a small passenger vehicle that was on its way to Ukerhal from Ramban and due to the impact the vehicle fell into a deep gorge," a senior police officer said.
He said that immediately after the accident, local residents launched a rescue operation to evacuate the trapped passengers.
The police and civil administration also reached the spot soon after the accident, he said.
"One person died on the spot while the second one died on way to the hospital," the officer said, adding that seven of the seriously injured are being airlifted to Jammu for treatment.
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