It's really up to the serving utility. If they say it's required, you will have to provide it -- and pay for it, of course.
If you complain or question the need, they will say it is safety-related, and that will pretty much be the end of the discussion.
In some cases, I have been given a choice between transfer trip and installing distance relay that will be set to overreach the utility substation. In theory, the distance relays will cause more unnecessary trips than the transfer trip, but if the line is short and exposure low, the cost savings might be worth it.
There are situations where TT is truly a necessity to make sure the generators get off-line before reclosing or to avoid an islanding situation.