If indeed the ships have collided, it is an incident that will not be taken as minor or routine since it indicates gross errors in training. as also expertise and professionalism.
Foir example, if a jawan's rifle accidentally goes off and he is not even injured, it still will be taken as a serious error since there is some procedure that has been violated and such violations can lead to loss of life and property, apart from indicating poor discipline and training. Knowing the cause will assist in buttoning up the loopholes and relooking at procedures to make them better.
Of course, such incident need not be known to the general public since the general public cannot, in any way, assist.
In so far as the Navy is concerned, they are at sea and there are many fisherfolks and others around. Fisherfolks understand navigation. Therefore, any Naval accident will be witnessed. It will the talk of the town.
It is therefore better than the truth prevails without releasing OPSEC, so that the rumour mill that can demoralise the Nation, is squashed before it starts raging as a wild forest fire.
If the TOI is aware then it is a positive proof that someone, not from the Navy, has witnessed it.
It is better to be transparent than cloak issues with mumbo jumbo leading to conspiracy theories and other flights of fancy.