Color image segmentation is probably the most important task in image analysis and understanding. A novel Human Perception Based Color Image Segmentation System is presented in this paper. This system uses a neural network architecture. The neurons here uses a multisigmoid activation function. The multisigmoid activation function is the key for segmentation. The number of steps ie. thresholds in the multisigmoid function are dependent on the number of clusters in the image. The threshold values for detecting the clusters and their labels are found automatically from the first order derivative of histograms of saturation and intensity in the HSI color space. Here the main use of neural network is to detect the number of objects automatically from an image. It labels the objects with their mean colors. The algorithm is found to be reliable and works satisfactorily on different kinds of color images.