Back emf Protection
The protection diode connected across the inductor is normally reverse biased, as the voltage on its cathode, connected to the +V supply rail, will be more positive than its anode on the collector of the transistor. At switch off however, a large voltage spike of opposite polarity appears across the inductor, due to the collapsing magnetic field. For the duration of this voltage spike, the collector of the transistor could be at a higher potential than the supply, except that if this happens, the diode will become forward biased and prevent the collector voltage rising any higher than the supply rail.