could you explain how the diode will clamp the voltage to -0.7V?
You have to understand how diode works, but it is the beginning of beginnings. I had to understand it when constructed my first detector radio receiver (I was 10 those time).
Starting from ideal diode.
You can describe ideal diode as the element just not allowing its one pin to have higher voltage than the other and having nothing against this first pin having lower voltage than the other. This is an exhaustive description of the ideal diode - it does not need to have any additional features.
Ideal diode used at input pin will clamp any negative input to GND (so to 0V measured against GND).
But real diode don't start conducting with 0V at it but need some voltage (typical silicon diode you can assume it is about 0.7V, if pulse have high current it will be bigger voltage drop depending on diode and current).
Your IC probably have such diodes inside. If it is damaged by pulse than external diode will help only a little as current pulse probably will equally divide between this external and internal diode. But if between external diode and internal diode there will be some resistor than you can calculate how much of pulse is going through external diode and how much through internal. Take for diode you use characteristic from datasheet and assume typical small signal diode characteristic for internal diode.