The study aimed at measuring the effect of perceptual health threat and social distancing on the well-being of people. 357 respondents from four districts of a state of eastern India participated in the study. Factor analysis was computed to extract factors of two scales- protection motivation and social distancing. Stepwise multiple regression analysis was computed to predict protection motivation on social distancing behaviour. In a separate set of regression analysis, social distancing behaviour and protection motivation predicted three separate indicators of well-being. The result suggested that the perceptual health threat significantly moderated social distancing behaviour during COVID 19 pandemic. The findings revealed that people opted for more social distancing behaviour when they had potential health threat during COVID 19 pandemic. People had more experiences of loneliness and anxiety and had shown hostility during the lockdown. The results are interpreted in light of risk aversion management.