More than 2,000 people have gathered outside Parliament House in Canberra to call for greater homebirthing rights.

Women, men and children from all over Australia braved a rainy Canberra day to support women's rights to give birth at home.

The protesters say they are pleased midwives have been given a reprieve allowing them to practice legally until 2012.

State and territory health ministers agreed on Friday to give midwives a two-year exemption from holding indemnity insurance.

But Justine Caines from Homebirth Australia says it is not enough.

She says the Federal Government should fund indemnity insurance for midwives.

"When midwives had insurance they had a strong history of no claims, very few claims," she said.

"This ridiculous idea that it's so risky and there's going to be multi-million dollar claims is absolutely untrue."

Last week Federal Health Minister Nicola Roxon said the Government would not be providing indemnity insurance for homebirths.

Liberal, Greens and Family First senators spoke at today's rally in support of homebirth.

Addressing the crowd, Opposition health spokesman Peter Dutton said homebirthing was a choice that should be protected.

"In Australia in the 21st century, this is about a basic, democratic argument that this Government has tried to switch off," he said.

Opposition frontbencher Ian Macfarlane paid tribute to the demonstrators, saying Ms Roxon only listened "when women stand in the rain to get a voice in the house".

He said the Government had been on the verge of banning homebirths and welcomed Ms Roxon's "massive backflip".

Labor Senator Claire Moore, who chairs the community affairs committee which recommended legislation to expand indemnity for hospital midwives, said the issue of indemnity had gone on for "way too long".

The crowd was subdued as Senator Moore defended the new agreement.

"The Government can come up with a solution that all of you can survive," she said.

"We're all concerned about women and children and families being safe."