Janine Bolton's 4-year-old daughter, Daryl-Ann, has severe cerebral palsy, cortical blindness and epilepsy.
She cannot walk, talk, or feed herself.
After investigating, ACC accepted Daryl-Ann's claim, finding inappropriate management of labour and newborn resuscitation caused her disability.
Ms Bolton estimated the claim would cost up to $20 million over her daughter's life.
Ms Bolton said her and Daryl-Ann's father Rob Fehsenfeld's lives were consumed with the care of their daughter, for whom a live-in carer was also provided.
Their careers, including Ms Bolton's book-keeping business, had been significantly affected, and they had had no more children in order to focus on her.
Ms Bolton said the Government should accept in full the recommendations of its health select committee, and take on board the specific recommendations of her organisation, The Good Fight.
The parents' group wants an independent review of how changes to the maternity sector affected care in the past two decades, increased emphasis on safety, guidelines to deal with emergencies, more time in hospital for mothers, a birth database, and more support for families when things go wrong.
The select committee's recommendations included a central database with information on all births, and compulsory supervision for at least a year for midwives.
Responding this week, the Government said quality improvement initiatives were well in train, including increased reporting, firmer clinical guidelines, and developing a national quality and safety programme.
Ms Bolton had expected a stronger response.
She believed the Government wanted to save money, but failed to take into account the huge cost of care for children like her daughter.
Her daughter's birth was not even recorded as abnormal, meaning the health sector could not learn from her case.
A database was crucial to ensuring all New Zealanders had a full picture of how the sector was performing.
After a normal pregnancy, Ms Bolton went into labour in November 2006, on her due date, and went to hospital for her planned water birth.
Ms Bolton said ACC's investigation confirmed the midwife should have called in an obstetrician when she discharged meconium, an indicator of fetal distress, and that the midwife did not adequately monitor the distress.
Her baby was stillborn, a paediatrician arriving only after resuscitation attempts had been started.
The baby was inadequately treated and monitored in her first few days of life, which might have increased her level of disability.
Ms Bolton was disillusioned with maternity care in New Zealand, saying the sector emphasised the "touchy feely" normal side of birthing, rather than acknowledging potential dangers. eileen.goodwin@odt.co.nz
