Of course, it’s possible, and it works more or less with a MIDI+VST instrument tracks combination as with an instrument track. But it requires that, in Kontakt 5, each instrument/timbre has its own dedicated bus/output, in order to appear as an individual automation track in the project window ‘VST instruments’ folder.
Then, for using a delay as an insert effect, just insert it in this track, corresponding to the MIDI one, but placed in this ‘VST instruments’ folder (should be named something like ‘Kontakt Out n’ or ‘Kontakt Bus n’). After this, use its automation implementation as wanted : the purpose of the existence of this kind of tracks, located in the ‘VST instruments’ folder, is precisely this one…
In short, you’ll be able to do as many individual insertings/automations as there are outputs/busses defined in Kontakt 5.
By the way, and unless you need more than 16 different instruments, I would use only one Kontakt 5 instance, each MIDI track having a different MIDI channel and its own dedicated Kontakt 5 bus/output, as it is multitimbral, but it’s another debate…