ORA-12420: required procedures and functions not in policy package "string"
Cause : The policy package did not contain all of the procedures and functions necessary to enforce the policy.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Consult the label framework documentation for a list of required procedures and functions for a 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.