The answer to this question is provided by the European Commission.

The exemption of ancillary intermediaries from the scope of the Directive under Article 1(3) IDD requires that they distribute insurance “complementary to the good or service supplied” covering either (i) the risk of breakdown, loss of, or damage to the good, or the non-use of the service supplied by the provider; or (ii) damage to, or loss of baggage and other risks linked to travel booked with the provider. The Directive sets no conditions with regard to the precise timing of the sale of insurance product in relation to supplying the good or service. It also contains no definition of the term “complementary to a good or service”.

Under these conditions, it has to be concluded that, under Article 1(3) IDD, exempted ancillary insurance intermediaries are entitled to distribute insurance products that meet the conditions set out in that article, provided that they are “complementary to the good or service” supplied by the provider. The exact timing of the purchase of the insurance product in relation to the provision of the good or service is not a decisive factor. Indeed, Article 1(3) of the IDD does not explicitly prevent the distribution of insurance products after the purchase of the principal good/service as long as the insurance product can be considered complementary to the specific good or service previously purchased from the same provider. In the case of services, this can typically be the case as long as the provision of the service has not yet begun. For example, in the case of air travel, travel insurance can be taken out both at the time of booking or later at check-in. In the case of insurance of goods against the risk of breakdown, loss or damage there must be a sufficient temporal and factual connection with the supply of the good by the provider.

In any event, Article 1(4) IDD has to be complied with, which provides additional obligations when ancillary insurance intermediaries, who are exempted from the scope of the IDD, distribute insurance products. In particular, Article 1(4)(b) IDD requires that insurers and insurance intermediaries, when carrying out a distribution activity through an exempted ancillary insurance intermediary, are responsible for compliance with Articles 17 and 24 IDD, and for considering the demands and needs of the customer before the proposal of the contract.

Disclaimer provided by the European Commission:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies, in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.