Re-throwing RuntimeExceptions after catching Checked Exceptions

In Java it is observed that there is a convention of re-throwing a RuntimeException just after handling a Checked Exception.

This way has both good and bad consequences. When the compiler forces something to be handled via a Checked Exception, the developer can just get rid of it by catching it and re-throwing it as a RuntimeException.

Can someone explain if this scenario can be considered as a good practice? If so, would this approach be less error prone or would it make the code base unstable?