Unemployment loans – Payment Protection Insurance

Labour describe them as like student loans but some say Milliband is guilty of  arguing for another spate of Payment Protection Insurance mis-selling scams

 You pay your NI stamp which gives you cradle to grave protection whenever it occurs not just when you have paid in enough – then you find that it doesn’t actually pay enough so you can now get a loan based on your contributions which you pay back when you get a job.
 

Pay your stamp increased to include insurance premium, and when you are unemployed, you work free for your benefit payment and indenture yourself to the State with a loan you can’t ever repay.

Am i missing something here?