In a cutting tool having an indexable cutting insert with three cutting portions, the cutting insert is removably securable to an insert holder by means of a fastener. The cutting insert has two opposing end surfaces with a peripheral side surface extending therebetween. At least one end surface has a central boss protruding therefrom with a raised support surface, and the peripheral side surface has three abutment recesses. In an end view of the cutting insert, each of the three abutment recesses is visible and located inside a first imaginary circle circumscribing the visible central boss. A holding portion of the insert holder has a seating surface with at least one protuberance protruding therefrom. The support surface is in clamping contact with the seating surface, and exactly two of the three abutment recesses are engaged with the at least one protuberance.