Most places in the country do not require an OUTSIDE disconnect. The NEC certainly makes no such requirement. Except in a few places where the entire panel is mounted outside (temperate climates such as the Southwest), I'd even say it is uncommon. I have one in my place in NC, but only because there's a whole house transfer switch also mounted outside next to the generator.

What makes you think your main disconnect isn't protecting the run from the meter over to it?

The standard procedure when making changes to the main disconnect (or stuff on the hot side of it) is to call the power company and have them shut you off.

The generator transfer switch is infact a remotely controlled DPDT switch. Mine is rated at 400A. I've got a 80KVA generator.

If you add an outside disconnect, you will have to replace the line feeding the inside panel with 4 conductor cable since this inside panel now becomes a subpanel.

The service entrance cable is protected by the main in the panel against overload.

The POCO line fuse (on the distribution side of the pole transformer) provides the short circuit protection.

It is not required since it is not really of much benefit.

I took forgranted that the Main in the panel protected only the Load Side and not also Line side!
Also assumed since the nearest City required Outside Disconnect that it was a NEC requirement.
Thanks for sitting me straight!