Legal notice reply cost is asked by oppoenent

It is usual that the lawyer would be demanding the cost of the legal notice or reply. 

You may ignore it. 

The cost of sending a legal notice is typically borne by the sender. However, the situation you've described seems to involve a dispute over a service provided by the hospital resulting in financial losses for you due to an incorrect report to the insurance company. Under the Consumer Protection Act, 2019, your situation of an erroneous report leading to insurance claim rejection falls under deficiency in service. The Act protects consumers in such cases. The request for payment regarding the legal notice might contradict Section 12(1)(c) of the Act, which prohibits imposing extra financial burdens on consumers seeking grievance redressal.

Regarding the legal consequences, a legal notice is often the first step towards initiating legal proceedings. However, if you've decided not to pursue this matter further, it's essential to communicate this decision formally. Failing to respond after sending a legal notice may prompt the other party to take further legal action.

Be sure to seek legal advice to draft a formal response stating your decision not to proceed and clarifying your stance on the requested payment for the legal notice. This approach aims to prevent any potential legal ramifications while safeguarding your interests as per the established legal framework.

The facts posted suggest no legal necessity to comply with the demand. Just ignore it, as already suggested.