The Jammu and Kashmir State Road Transport Corporation, which will ply buses on the new Srinagar-Muzaffarabad route, does not have insurance cover.
Unlike the Delhi-Lahore bus, passengers travelling on this route will be doing so at their own risk, said a report in Pakistan-based Daily Times Monitor quoting J&K Minister of State for Transport Raman Bhalla.
JKSRTC managing director S Mehta told the paper: "We are in touch with some insurance companies but so far none of them have come forward. However, we have kept funds to cover eventualities."
The Srinagar-Muzaffarabad bus service is scheduled to start on April 7.
Government and army officials in Kashmir have said that construction work on the road is on schedule for the historic opening.