Yes you need to have a well developed clutch reflex whenever you hear sudden engine noises.. I recall partially seizing my Honda 305 and later my Kawasaki H1 and both times I pulled the clutch and let it coast to a stop with no further damage to the engine or the bike. In both cases the bike restarted and ran OK afterwards albeit with a bit of piston slap.
2004 Rebel 250, 2003 BMW K1200GT (roadburner), 2004 BMW R1200GS(all purpose),
1996 Ducati 900SS CR (California Bike), 1973 Norton Interstate (in a box in the basement)