A tool for chip-removing machining including a tool body and at least one cutting insert mounted in an insert seat of the tool body. The cutting insert includes an upper side and a lower side directed toward a bottom contact surface of the insert seat. The cutting insert is formed by sintering together two compacted powder parts, one of the parts forming an upper part and the other forming a lower part. An imaginary plane is defined between the lower and upper parts. A side surface extends between the upper and lower sides around the periphery of the cutting insert, and at least one cutting edge is formed in a transition between the upper side and the side surface. The tool is configured so that the tool body contacts the side surface of the cutting insert only above the imaginary plane along an upper part of the side surface.