Tia,
No, it does not need lubrication. The motor uses a starting circuit that is disabled by a centrifugal switch when the motor gets up to speed. When you switch it off and the motor slows down enough the "clutch" drops out and reenables the starting circuit. You are hearing the fork on the switch rubbing up against the centrifugal clutch. It is a normal noise and you do not need to worry about it.
bababrown