Flank wear of multilayer coated carbide (TiN/TiCN/Al2O3/TiN) insert in dry hard turning is studied. Machining under wet condition is also performed and flank wear is measured. A novel micro-channel is devised in the insert to deliver the cutting fluid directly at the tool-chip interface. Lower levels of cutting parameters yield the minimum flank wear which is significantly affected by cutting speed and feed rate. In comparison to dry and wet machining, insert with micro-channel reduces the flank wear by 48.87% and 3.04% respectively. The tool with micro-channel provides saving of about 87.5% in the consumption of volume of cutting fluid and energy.