<PAGE>





   As filed with the Securities and Exchange Commission on February 28, 1996.

                                                 Registration No. 333-
===============================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                              --------------------

                                    FORM S-8
                             REGISTRATION STATEMENT
                                      UNDER
                           THE SECURITIES ACT OF 1933
                              --------------------

                               DONEGAL GROUP INC.
             (Exact name of registrant as specified in its charter)

         Delaware                                       23-2424711
 (State or other jurisdiction of          (I.R.S. Employer Identification No.)
  incorporation or organization)

              1195 River Road
        Marietta, Pennsylvania                           17547
(Address of Principal Executive Offices)              (Zip Code)


                              --------------------

                               DONEGAL GROUP INC.
                        1996 EMPLOYEE STOCK PURCHASE PLAN
                              (Full title of plan)
                              --------------------


                          Donald H. Nikolaus, President
                               Donegal Group Inc.
                                 1195 River Road
                          Marietta, Pennsylvania 17547
                     (Name and address of agent for service)

                                 (717) 426-1931
                     (Telephone number, including area code,
                              of agent for service)
                              --------------------


                                    Copy to:
                            Kathleen M. Shay, Esquire
                            Duane, Morris & Heckscher
                                One Liberty Place
                           Philadelphia, PA 19103-7396

                         CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
================================================================================================================================
                                                           Proposed                  Proposed
  Title of securities          Amount to be            maximum offering          maximum aggregate             Amount of
   to be registered             registered(1)         price per share(2)         offering price(2)         registration fee
--------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                        <C>                       <C>                        <C>       
Common Stock,                 100,000 shares             $18.5625                  $1,856,250                 $641
par value $1.00
================================================================================================================================
</TABLE>

(1)  In addition, pursuant to Rule 416(c) under the Securities Act of 1933,
     this registration statement also covers an indeterminate amount of
     interests to be offered or sold pursuant to the 1996 Employee Stock
     Purchase Plan.

(2)  Estimated solely for the purpose of calculating the registration fee based
     on the average of the high and low sales prices of the Common Stock of the
     Company on the Nasdaq Stock Market on February 22, 1996, or $18.5625 per
     share.



<PAGE>



                               DONEGAL GROUP INC.


                              Cross-Reference Sheet
                    Pursuant to Item 501(b) of Regulation S-K


<TABLE>
<CAPTION>
Item Number and Caption                                                            Heading in Prospectus
-----------------------                                                            ---------------------
<S>     <C>                                                                        <C>

1.     Plan Information.........................................................            *

2.     Registrant Information and Employee
       Plan Annual Information..................................................            *
</TABLE>
---------------
*  Omitted because no Prospectus is being filed herewith. All information
   required in the Section 10(a) Prospectus will be furnished to plan
   participants pursuant to a memorandum or other plan documents, as
   supplemented or amended from time to time.




<PAGE>



                                     PART II

                 INFORMATION REQUIRED IN REGISTRATION STATEMENT


Item 3.  Incorporation of Documents by Reference.

         The following material is incorporated herein by reference:

         (a) The Annual Report on Form 10-K of Donegal Group Inc. (the
"Company") for the year ended December 31, 1994 as filed by the Company with the
Securities and Exchange Commission (the "Commission").

         (b) The Company's Form 10-Q Reports for the quarters ended March 31,
1995, June 30, 1995 and September 30, 1995 as filed by the Company with the
Commission.

         (c) The description of the Company's Common Stock set forth in the
Company's Registration Statement on Form S-1 filed with the Commission under the
Securities Act of 1933, as amended, (the "Act") on October 29, 1986 under the
caption "Description of Capital Stock," "Dividend Policy" and
"Business--Regulation," which is incorporated by reference in response to Item 1
of the Registration Statement on Form 8-A filed by the Company with the
Commission on January 27, 1987 pursuant to Section 12(g) of the Securities
Exchange Act of 1934, as amended, (the "Exchange Act").

         All reports or other documents filed pursuant to Sections 13, 14 and
15(d) of the Exchange Act subsequent to the date of this Registration Statement,
in each case filed by the Company prior to the termination of the offering of
the securities offered hereby, shall be deemed to be incorporated by reference
in this Registration Statement and to be a part hereof from the date of filing
of such reports and documents. Any statement contained in a document
incorporated or deemed to be incorporated herein by reference shall be deemed to
be modified or superseded for the purposes of this Registration Statement to the
extent that a statement contained herein or in any other subsequently filed
document, which also is or is deemed to be incorporated herein by reference,
modifies or supersedes such statement. Any statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part
of this Registration Statement.

Item 4.  Description of Securities.

         No answer to this item is required because the class of securities to
be offered is registered under Section 12 of the Exchange Act.

Item 5.  Interests of Named Experts and Counsel.

         The consolidated financial statements and schedules of the Company as
of December 31, 1993 and 1994 and for each of the years in the three-year period
ended December 31, 1994

                                      II-1

<PAGE>



incorporated by reference in this Registration Statement have been audited and
reported on by KPMG Peat Marwick LLP, independent certified public accountants.
Such financial statements and schedules have been incorporated by reference
herein in reliance upon the report of KPMG Peat Marwick LLP, incorporated by
reference herein, and upon the authority of said firm as experts in accounting
and auditing. Such report refers to a change in the Company's method of
accounting for investment securities by adopting the provisions of Statement of
Financial Accounting Standards No. 115 "Accounting for Certain Investments in
Debt and Equity Securities."

         The validity of the issuance of the shares of Common Stock registered
hereby will be passed upon for the Company by Duane, Morris & Heckscher,
Philadelphia, Pennsylvania.

Item 6.  Indemnification of Directors and Officers.

         Section 145 of the General Corporation Law of the State of Delaware
empowers a Delaware corporation to indemnify any person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the corporation) by reason of the
fact that he is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit or proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon plea of nolo contendere or its equivalent, does not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his conduct was unlawful.

         In the case of an action or suit by or in the right of the corporation
to procure a judgment in its favor, Section 145 empowers a corporation to
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action or suit by reason of the fact
that he is or was acting in any of the capacities set forth above against
expenses (including attorneys' fees) actually and reasonably incurred by him in
connection with the defense or settlement of such action or suit if he acted in
good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the corporation, except that indemnification is not permitted
in respect of any claim, issue or matter as to which such person is adjudged to
be liable to the corporation unless and only to the extent that the Court of
Chancery or the court in which such action or suit was brought determines upon
application that, despite the adjudication of liability but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which the Court of Chancery or such other court
deems proper.

         Section 145 further provides: That a Delaware corporation is required
to indemnify a director, officer, employee or agent against expenses (including
attorneys' fees) actually and reasonably incurred by him in connection with any
action, suit or proceeding or in defense of any

                                      II-2

<PAGE>



claim, issue or matter therein as to which such person has been successful on
the merits or otherwise; that indemnification provided for by Section 145 shall
not be deemed exclusive of any other rights to which the indemnified party may
be entitled; that indemnification provided for by Section 145 shall, unless
otherwise provided when authorized or ratified, continue as to a person who has
ceased to be a director, officer, employee or agent and shall inure to the
benefit of such person's heirs, executors and administrators; and empowers the
corporation to purchase and maintain insurance on behalf of a director or
officer against any liability asserted against him and incurred by him in any
such capacity or arising out of his status as such whether or not the
corporation would have the power to indemnify him against such liability under
Section 145. A Delaware corporation may provide indemnification only as
authorized in the specific case upon a determination that indemnification of the
director, officer, employee or agent is proper in the circumstances because he
has met the applicable standard of conduct. Such determination is to be made (i)
by the board of directors by a majority vote of a quorum consisting of directors
who were not party to such action, suit or proceeding, or (ii) if such a quorum
is not obtainable, or, even if obtainable, a quorum of disinterested directors
so directs, by independent legal counsel in a written opinion or (iii) by the
stockholders.

         Article Five of the Company's By-laws provides for indemnification of
directors and officers of the Company to the fullest extent permitted by the
General Corporation Law of the State of Delaware, as presently or hereafter in
effect. The By-laws of Donegal Mutual Insurance Company also provide that
Donegal Mutual Insurance Company shall indemnify to the full extent authorized
by law any director or officer of Donegal Mutual Insurance Company who is made,
or threatened to be made, a party to any action or proceeding, whether criminal,
civil, administrative or investigative, by reason of the fact that he is or was
serving as a director, officer or employee of the Company at the request of
Donegal Mutual Insurance Company.

         The Company provides liability insurance for each director and officer
for certain losses arising from claims or charges made against them while acting
in their capacities as directors or officers of the Company up to an aggregate
of $1,000,000 inclusive of defense costs, expenses and charges.

         Additionally, as permitted by the General Corporate Law of the State of
Delaware, Article Six of the Company's Certificate of Incorporation provided
that no director of the Company shall incur personal liability to the Company or
its stockholders for monetary damages for breach of his fiduciary duty as a
director; provided, however, that the provision does not eliminate or limit the
liability of a director for (i) any breach of the director's duty of loyalty to
the Company or its stockholders; (ii) acts or omissions not in good faith or
which involve intentional misconduct or a knowing violation of law; (iii) the
unlawful payment of dividends or unlawful purchase or redemption of stock under
Section 174 of the General Corporation Law of the State of Delaware; or (iv) any
transaction from which the director derived an improper personal benefit.

Item 7.  Exemption from Registration Claimed.

         No answer to this item is required because no restricted securities are
to be reoffered or resold pursuant to this Registration Statement.

                                      II-3

<PAGE>




Item 8.  Exhibits.

(4)        Donegal Group Inc. 1996 Employee Stock Purchase Plan.

(5)        Opinion of Duane, Morris & Heckscher.

(23)(A)    Consent of Duane, Morris & Heckscher (included in their opinion
           filed as Exhibit 5).

(23)(B)    Consent of KPMG Peat Marwick LLP.

(24)       Power of Attorney (see page II-6 of this Registration Statement).

Item 9.  Undertakings.

         The registrant hereby undertakes:

         (a) to file, during any period in which offers or sales are being made,
a post-effective amendment to this Registration Statement to include any
material information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to such
information in the Registration Statement;

         (b) that for purposes of determining any liability under the Act, each
such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein and the offering of such securities
at that time shall be deemed to be the initial bona fide offer thereof; and

         (c) to remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of
the offering.

         The undersigned registrant hereby further undertakes that, for purposes
of determining any liability under the Act, each filing of the registrant's
annual report pursuant to section 13(a) or section 15(d) of the Exchange Act
(and, where applicable, each filing of an employee benefit plan's annual report
pursuant to section 15(d) of the Exchange Act) that is incorporated by reference
in the registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.

         The undersigned registrant hereby further undertakes that, insofar as
indemnification for liabilities arising under the Act may be permitted to
directors, officers and controlling persons of the registrant, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered,

                                      II-4

<PAGE>



the registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.















                                      II-5


<PAGE>



                                   SIGNATURES

         Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in Marietta, Pennsylvania on February 28, 1996.

                                            DONEGAL GROUP INC.


                                            By: /s/ Donald H. Nikolaus
                                               --------------------------------
                                               Donald H. Nikolaus, President


         Know all men by these presents, that each person whose signature
appears below constitutes and appoints Donald H. Nikolaus and Ralph G. Spontak,
and each or either of them, as his true and lawful attorneys-in-fact and agents,
with full power of substitution, for him, and in his name, place and stead, in
any and all capacities to sign any or all amendments or post-effective
amendments to this Registration Statement, and to file the same, with all
exhibits thereto and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and
agents full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully to all
intents and purposes as he might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them or their
substitutes, may lawfully do or cause to be done by virtue hereof.

         Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed below by the following persons in
the capacities and on the date indicated.

<TABLE>
<CAPTION>

          Signature                                           Title                                Date
          ---------                                           -----                                -----

<S>                                            <C>                                            <C> 
/s/ C. Edwin Ireland                           Chairman of the Board and a Director            February 28, 1996
------------------------------------
C. Edwin Ireland


/s/ Donald H. Nikolaus                         President and a Director                        February 28, 1996
------------------------------------            (principal executive officer)
Donald H. Nikolaus                             


/s/ Ralph G. Spontak                           Senior Vice President, Chief Financial          February 28, 1996
------------------------------------            Officer and Secretary
Ralph G. Spontak                                (principal financial and                                     
                                                accounting officer)


/s/ Patricia A. Gilmartin                      Director                                        February 28, 1996
------------------------------------
Patricia A. Gilmartin


                                      II-6

<PAGE>


<CAPTION>

          Signature                                           Title                                Date
          ---------                                           -----                                -----


/s/ Philip H. Glatfelter, II                    Director                                       February 28, 1996
------------------------------------
Philip H. Glatfelter, II


/s/ R. Richard Sherbahn                         Director                                       February 28, 1996
------------------------------------
R. Richard Sherbahn

                                                                                                          , 1996
------------------------------------            Director 
Thomas J. Finley, Jr.

                                                                                                          , 1996
------------------------------------            Director 
Robert S. Bolinger

</TABLE>



                                                       II-7

<PAGE>



                                  EXHIBIT INDEX

                    (Pursuant to Item 601 of Regulation S-K)


Exhibit No.                         Exhibit                                Page

(4)         Donegal Group Inc. 1996 Employee Stock Purchase Plan.

(5)         Opinion of Duane, Morris & Heckscher.

(23)(B)     Consent of KPMG Peat Marwick LLP.
[{"type": "S-8", "sequence": "1", "description": "REGISTRATION STATEMENT ON FORM S-8", "secsgml_size_bytes": 22710}]
{"company-data": {"conformed-name": "DONEGAL GROUP INC", "cik": "0000800457", "assigned-sic": "6331", "irs-number": "232424711", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-01287", "film-number": "96527805"}, "business-address": {"street1": "1195 RIVER RD PO BOX 302", "city": "MARIETTA", "state": "PA", "zip": "17547-0302", "phone": "7174261931"}, "mail-address": {"street1": "1195 RIVER ROAD", "street2": "BOX 302", "city": "MARIETTA", "state": "PA", "zip": "17547"}}
As filed with the Securities and Exchange Commission on February 28, 1996.

                                                 Registration No. 333-
===============================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                              --------------------

                                    FORM S-8
                             REGISTRATION STATEMENT
                                      UNDER
                           THE SECURITIES ACT OF 1933
                              --------------------

                               DONEGAL GROUP INC.
             (Exact name of registrant as specified in its charter)

         Delaware                                       23-2424711
 (State or other jurisdiction of          (I.R.S. Employer Identification No.)
  incorporation or organization)

              1195 River Road
        Marietta, Pennsylvania                           17547
(Address of Principal Executive Offices)              (Zip Code)

                              --------------------

                               DONEGAL GROUP INC.
                        1996 EMPLOYEE STOCK PURCHASE PLAN
                              (Full title of plan)
                              --------------------

                          Donald H. Nikolaus, President
                               Donegal Group Inc.
                                 1195 River Road
                          Marietta, Pennsylvania 17547
                     (Name and address of agent for service)

                                 (717) 426-1931
                     (Telephone number, including area code,
                              of agent for service)
                              --------------------

                                    Copy to:
                            Kathleen M. Shay, Esquire
                            Duane, Morris & Heckscher
                                One Liberty Place
                           Philadelphia, PA 19103-7396

                         CALCULATION OF REGISTRATION FEE
================================================================================================================================
                                                           Proposed                  Proposed
  Title of securities          Amount to be            maximum offering          maximum aggregate             Amount of
   to be registered             registered(1)         price per share(2)         offering price(2)         registration fee
--------------------------------------------------------------------------------------------------------------------------------
Common Stock,                 100,000 shares             $18.5625                  $1,856,250                 $641
par value $1.00
================================================================================================================================
(1)  In addition, pursuant to Rule 416(c) under the Securities Act of 1933,
     this registration statement also covers an indeterminate amount of
     interests to be offered or sold pursuant to the 1996 Employee Stock
     Purchase Plan.

(2)  Estimated solely for the purpose of calculating the registration fee based
     on the average of the high and low sales prices of the Common Stock of the
     Company on the Nasdaq Stock Market on February 22, 1996, or $18.5625 per
     share.
DONEGAL GROUP INC.

                              Cross-Reference Sheet
                    Pursuant to Item 501(b) of Regulation S-K
Item Number and Caption                                                            Heading in Prospectus
-----------------------                                                            ---------------------
1.     Plan Information.........................................................            *

2.     Registrant Information and Employee
       Plan Annual Information..................................................            *
---------------
*  Omitted because no Prospectus is being filed herewith. All information
   required in the Section 10(a) Prospectus will be furnished to plan
   participants pursuant to a memorandum or other plan documents, as
   supplemented or amended from time to time.
PART II

                 INFORMATION REQUIRED IN REGISTRATION STATEMENT

Item 3.  Incorporation of Documents by Reference.

         The following material is incorporated herein by reference:

         (a) The Annual Report on Form 10-K of Donegal Group Inc. (the
"Company") for the year ended December 31, 1994 as filed by the Company with the
Securities and Exchange Commission (the "Commission").

         (b) The Company's Form 10-Q Reports for the quarters ended March 31,
1995, June 30, 1995 and September 30, 1995 as filed by the Company with the
Commission.

         (c) The description of the Company's Common Stock set forth in the
Company's Registration Statement on Form S-1 filed with the Commission under the
Securities Act of 1933, as amended, (the "Act") on October 29, 1986 under the
caption "Description of Capital Stock," "Dividend Policy" and
"Business--Regulation," which is incorporated by reference in response to Item 1
of the Registration Statement on Form 8-A filed by the Company with the
Commission on January 27, 1987 pursuant to Section 12(g) of the Securities
Exchange Act of 1934, as amended, (the "Exchange Act").

         All reports or other documents filed pursuant to Sections 13, 14 and
15(d) of the Exchange Act subsequent to the date of this Registration Statement,
in each case filed by the Company prior to the termination of the offering of
the securities offered hereby, shall be deemed to be incorporated by reference
in this Registration Statement and to be a part hereof from the date of filing
of such reports and documents. Any statement contained in a document
incorporated or deemed to be incorporated herein by reference shall be deemed to
be modified or superseded for the purposes of this Registration Statement to the
extent that a statement contained herein or in any other subsequently filed
document, which also is or is deemed to be incorporated herein by reference,
modifies or supersedes such statement. Any statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part
of this Registration Statement.

Item 4.  Description of Securities.

         No answer to this item is required because the class of securities to
be offered is registered under Section 12 of the Exchange Act.

Item 5.  Interests of Named Experts and Counsel.

         The consolidated financial statements and schedules of the Company as
of December 31, 1993 and 1994 and for each of the years in the three-year period
ended December 31, 1994

                                      II-1
incorporated by reference in this Registration Statement have been audited and
reported on by KPMG Peat Marwick LLP, independent certified public accountants.
Such financial statements and schedules have been incorporated by reference
herein in reliance upon the report of KPMG Peat Marwick LLP, incorporated by
reference herein, and upon the authority of said firm as experts in accounting
and auditing. Such report refers to a change in the Company's method of
accounting for investment securities by adopting the provisions of Statement of
Financial Accounting Standards No. 115 "Accounting for Certain Investments in
Debt and Equity Securities."

         The validity of the issuance of the shares of Common Stock registered
hereby will be passed upon for the Company by Duane, Morris & Heckscher,
Philadelphia, Pennsylvania.

Item 6.  Indemnification of Directors and Officers.

         Section 145 of the General Corporation Law of the State of Delaware
empowers a Delaware corporation to indemnify any person who was or is a party or
is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the corporation) by reason of the
fact that he is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit or proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon plea of nolo contendere or its equivalent, does not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his conduct was unlawful.

         In the case of an action or suit by or in the right of the corporation
to procure a judgment in its favor, Section 145 empowers a corporation to
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action or suit by reason of the fact
that he is or was acting in any of the capacities set forth above against
expenses (including attorneys' fees) actually and reasonably incurred by him in
connection with the defense or settlement of such action or suit if he acted in
good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the corporation, except that indemnification is not permitted
in respect of any claim, issue or matter as to which such person is adjudged to
be liable to the corporation unless and only to the extent that the Court of
Chancery or the court in which such action or suit was brought determines upon
application that, despite the adjudication of liability but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which the Court of Chancery or such other court
deems proper.

         Section 145 further provides: That a Delaware corporation is required
to indemnify a director, officer, employee or agent against expenses (including
attorneys' fees) actually and reasonably incurred by him in connection with any
action, suit or proceeding or in defense of any

                                      II-2
claim, issue or matter therein as to which such person has been successful on
the merits or otherwise; that indemnification provided for by Section 145 shall
not be deemed exclusive of any other rights to which the indemnified party may
be entitled; that indemnification provided for by Section 145 shall, unless
otherwise provided when authorized or ratified, continue as to a person who has
ceased to be a director, officer, employee or agent and shall inure to the
benefit of such person's heirs, executors and administrators; and empowers the
corporation to purchase and maintain insurance on behalf of a director or
officer against any liability asserted against him and incurred by him in any
such capacity or arising out of his status as such whether or not the
corporation would have the power to indemnify him against such liability under
Section 145. A Delaware corporation may provide indemnification only as
authorized in the specific case upon a determination that indemnification of the
director, officer, employee or agent is proper in the circumstances because he
has met the applicable standard of conduct. Such determination is to be made (i)
by the board of directors by a majority vote of a quorum consisting of directors
who were not party to such action, suit or proceeding, or (ii) if such a quorum
is not obtainable, or, even if obtainable, a quorum of disinterested directors
so directs, by independent legal counsel in a written opinion or (iii) by the
stockholders.

         Article Five of the Company's By-laws provides for indemnification of
directors and officers of the Company to the fullest extent permitted by the
General Corporation Law of the State of Delaware, as presently or hereafter in
effect. The By-laws of Donegal Mutual Insurance Company also provide that
Donegal Mutual Insurance Company shall indemnify to the full extent authorized
by law any director or officer of Donegal Mutual Insurance Company who is made,
or threatened to be made, a party to any action or proceeding, whether criminal,
civil, administrative or investigative, by reason of the fact that he is or was
serving as a director, officer or employee of the Company at the request of
Donegal Mutual Insurance Company.

         The Company provides liability insurance for each director and officer
for certain losses arising from claims or charges made against them while acting
in their capacities as directors or officers of the Company up to an aggregate
of $1,000,000 inclusive of defense costs, expenses and charges.

         Additionally, as permitted by the General Corporate Law of the State of
Delaware, Article Six of the Company's Certificate of Incorporation provided
that no director of the Company shall incur personal liability to the Company or
its stockholders for monetary damages for breach of his fiduciary duty as a
director; provided, however, that the provision does not eliminate or limit the
liability of a director for (i) any breach of the director's duty of loyalty to
the Company or its stockholders; (ii) acts or omissions not in good faith or
which involve intentional misconduct or a knowing violation of law; (iii) the
unlawful payment of dividends or unlawful purchase or redemption of stock under
Section 174 of the General Corporation Law of the State of Delaware; or (iv) any
transaction from which the director derived an improper personal benefit.

Item 7.  Exemption from Registration Claimed.

         No answer to this item is required because no restricted securities are
to be reoffered or resold pursuant to this Registration Statement.

                                      II-3
Item 8.  Exhibits.

(4)        Donegal Group Inc. 1996 Employee Stock Purchase Plan.

(5)        Opinion of Duane, Morris & Heckscher.

(23)(A)    Consent of Duane, Morris & Heckscher (included in their opinion
           filed as Exhibit 5).

(23)(B)    Consent of KPMG Peat Marwick LLP.

(24)       Power of Attorney (see page II-6 of this Registration Statement).

Item 9.  Undertakings.

         The registrant hereby undertakes:

         (a) to file, during any period in which offers or sales are being made,
a post-effective amendment to this Registration Statement to include any
material information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to such
information in the Registration Statement;

         (b) that for purposes of determining any liability under the Act, each
such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein and the offering of such securities
at that time shall be deemed to be the initial bona fide offer thereof; and

         (c) to remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of
the offering.

         The undersigned registrant hereby further undertakes that, for purposes
of determining any liability under the Act, each filing of the registrant's
annual report pursuant to section 13(a) or section 15(d) of the Exchange Act
(and, where applicable, each filing of an employee benefit plan's annual report
pursuant to section 15(d) of the Exchange Act) that is incorporated by reference
in the registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.

         The undersigned registrant hereby further undertakes that, insofar as
indemnification for liabilities arising under the Act may be permitted to
directors, officers and controlling persons of the registrant, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered,

                                      II-4
the registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.

                                      II-5
SIGNATURES

         Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in Marietta, Pennsylvania on February 28, 1996.

                                            DONEGAL GROUP INC.

                                            By: /s/ Donald H. Nikolaus
                                               --------------------------------
                                               Donald H. Nikolaus, President

         Know all men by these presents, that each person whose signature
appears below constitutes and appoints Donald H. Nikolaus and Ralph G. Spontak,
and each or either of them, as his true and lawful attorneys-in-fact and agents,
with full power of substitution, for him, and in his name, place and stead, in
any and all capacities to sign any or all amendments or post-effective
amendments to this Registration Statement, and to file the same, with all
exhibits thereto and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and
agents full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully to all
intents and purposes as he might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them or their
substitutes, may lawfully do or cause to be done by virtue hereof.

         Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed below by the following persons in
the capacities and on the date indicated.
Signature                                           Title                                Date
          ---------                                           -----                                -----
/s/ C. Edwin Ireland                           Chairman of the Board and a Director            February 28, 1996
------------------------------------
C. Edwin Ireland

/s/ Donald H. Nikolaus                         President and a Director                        February 28, 1996
------------------------------------            (principal executive officer)
Donald H. Nikolaus                             

/s/ Ralph G. Spontak                           Senior Vice President, Chief Financial          February 28, 1996
------------------------------------            Officer and Secretary
Ralph G. Spontak                                (principal financial and                                     
                                                accounting officer)

/s/ Patricia A. Gilmartin                      Director                                        February 28, 1996
------------------------------------
Patricia A. Gilmartin

                                      II-6
Signature                                           Title                                Date
          ---------                                           -----                                -----

/s/ Philip H. Glatfelter, II                    Director                                       February 28, 1996
------------------------------------
Philip H. Glatfelter, II

/s/ R. Richard Sherbahn                         Director                                       February 28, 1996
------------------------------------
R. Richard Sherbahn

                                                                                                          , 1996
------------------------------------            Director 
Thomas J. Finley, Jr.

                                                                                                          , 1996
------------------------------------            Director 
Robert S. Bolinger
II-7
EXHIBIT INDEX

                    (Pursuant to Item 601 of Regulation S-K)

Exhibit No.                         Exhibit                                Page

(4)         Donegal Group Inc. 1996 Employee Stock Purchase Plan.

(5)         Opinion of Duane, Morris & Heckscher.

(23)(B)     Consent of KPMG Peat Marwick LLP.