[aaggoswami]

I agree that the engines are complex and they can get damaged. This is not the first time I am observing this. I have seen this in Indigo too. If the car was running fine, then we cannot pin point towards manufacturing defect.

You are perfectly right that you have not moved from the moment you stopped and as a proof of this, there is oil on the road.
Dealing with insurance company is not an easy task. From different stories I have heard, the argument insurance firms give is that this type of damage is regular wear and tear and not accident.

Try contacting them at higher level. And also from our past experience with Baleno, Emails hardly help in matters. They do not look into each and every image that you have emailed them. Try reaching the intelligent humans in person.