For instance, clutch ring inlaid with diamonds (5)
I believe the answer is:
pedal
'for instance clutch' is the definition.
'ring inlaid with diamonds' is the wordplay.
'ring' becomes 'peal' ('peal' can be a synonym of 'ring').
'inlaid with' is an insertion indicator.
'diamonds' becomes 'd' (abbreviation in bridge say).
'peal' enclosing 'd' is 'PEDAL'.
(Other definitions for pedal that I've seen before include "Foot control" , "Foot-lever" , "One of two a cyclist needs" , "Lever worked by foot" , "One may be sustaining" .)