The following macro needs to be triggered manually but it will look at all cells in column C and add a row below the cells containing the letter "Y".

Public Sub Insert_Row()
Dim C_ell As Range
For Each C_ell In Range("C2", Cells(Rows.Count, 3).End(xlUp))
  If C_ell = "Y" Then
    C_ell.Offset(1, 0).EntireRow.Insert Shift:=xlDown
  End If
Next
End Sub