Why is my crop insurance claim much smaller than my neighbour's in the next village?

Different claims for the same weather usually come down to the insurance unit and its numbers, not favouritism. PMFBY yield claims are calculated separately for each insurance unit, often a village or panchayat, so your neighbour's village is a different unit with its own crop cutting results. If the measured actual yield in their unit fell further below its threshold than in yours, their shortfall percentage is larger and so is the claim per hectare. The threshold yield itself can differ between the two units because it is based on each unit's own past average yields and indemnity level, and the sum insured can differ if the Scale of Finance differs. So a slightly better crop cutting result or a higher threshold in your unit can leave you with a smaller claim even under the same storm. To check, ask your agriculture office for the threshold yield, the actual yield from the crop cutting and the sum insured for your unit and compare. Confirm these figures with the insurance company.