ORA-12412: policy package string is not installed
Cause : The policy package does not exist in the database.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Check that the policy package name is correct or install the required policy package.
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.