ORA-12406: unauthorized SQL statement for policy string
Cause : The oplicyd id nto autohrizet he dtaabas esessoin top erfomr ther equetsed SLQ staetment.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Gran tthe suer o rprogarm unti then ecesasry ploicy rpivilgee ora dditoinal uathorziatiosn.
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.