@Jaikrishnan0 Airbnb has what they call "extenuating circumstances" policy. Apparently, if the guest can prove, with documentation, that they have an extenuating circumstance Airbnb refunds them. I assume, as per Airbnb policy, it received documentation of the person's medical issues as proof, but I have no idea how thoroughly these things are followed up on.
https://www.airbnb.com/help/article/1320/what-is-airbnb-s-extenuating-circumstances-policy?topic=259
It would be far better if travelers had travel insurance and hosts had some protection. It happened to me once and the frustrating thing was, I typed in a search for 'medical issues' and got nothing, eventually I found it under 'extenuating circumstances'. How many people know to search for that ? And no, the person did not get their Airbnb fee refunded, just my fee.