A group of 12 women returning home from work in an auto-rickshaw and its driver were killed when the overloaded three-wheeler collided head-on with a passenger bus in the central Indian state of Madhya Pradesh Tuesday, police said.

The accident occurred in Madhya Pradesh's princely city of Gwalior, some 400 kms from state capital Bhopal, this morning.

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"The bus was travelling at high speed and its driver failed to spot the auto-rickshaw coming from the opposite direction, leading to the fatal crash," Gwalior police chief Amit Sanghi told the media.

While eight of the 12 women -- all temporary cooks at a local government health centre -- and the auto-rickshaw driver died on the spot, four succumbed to their injuries on the way to a nearby hospital, the police chief said.

"Fortunately, passengers travelling in the bus, which was headed to Morena district from Gwalior, escaped unhurt," he added.

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Indian President Ram Nath Kovind, Prime Minister Narendra Modi and Madhya Pradesh Chief Minister Shivraj Singh Chouhan have all expressed grief at the loss of lives. Modi has also announced compensation for the families of the victims.

"PM @narendramodi has approved an ex-gratia of Rs. 2 lakh each from Prime Minister’s National Relief Fund for the next of kin of those who have lost their lives due to the unfortunate accident in Gwalior, MP," the Prime Minister's Office tweeted later in the day.

In his condolence message, President Kovind said, "The news of the death of the passengers, mostly women, in the road accident in Gwalior, Madhya Pradesh, has deeply saddened me. My heartfelt condolences to the families who lost their loved ones."

A case has been registered against the bus driver for rash and negligent driving. "He fled from the spot. Efforts are on to nab him," the police chief said.

Road accidents are very common in India, with one taking place every four minutes. These accidents are often blamed on poor roads, rash driving and scant regard for traffic laws.

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Indian government's implementation of stricter traffic laws in recent years have failed to rein in accidents, which claimed over 100,000 lives every year.